You are here
Frequently Asked Questions
Some of the warning signs that you are accumulating too much debt include a lack of money in savings and paying only minimum payments on credit cards while continuing to make new purchases on those cards. Additionally, if you find yourself making late payments on bills or credit cards, bouncing checks or over-drafting your checking account, you are accumulating too much debt.
There are a number of options people have to avoid filing for bankruptcy. First, they can sell assets and restructure living expenses. Other options include home equity debt consolidation loans and credit counseling services. Additionally, they can proactively negotiate payment terms with their creditors.
Qualifying for bankruptcy differs from state to state and is complicated to determine. A means test was recently established to determine who is qualified for what type of bankruptcy. Suffice to say, around 70 percent of people who file for bankruptcy qualifies.
The benefits of filing for bankruptcy are numerous. First of all, bankruptcy restructures your debt, making it more manageable. Bankruptcy also offers peace of mind by eliminating the burden of dealing with creditors and the obligation to pay off debts. Moving forward, filing for bankruptcy helps you get a new start and equips you with useful financial skills.
Bankrutpcy maybe complicated but its nothing to fear. There are a lot of myths about bankruptcy. Like never being able to borrow money again; that both spouses in a marriage will have to file for bankruptcy; and that it is difficult to file for bankruptcy. Other people wrongly believe that filing for bankruptcy helps their credit rating or that they can only file for bankruptcy once.
The two types of personal bankruptcy that individuals can file under are Chapter 7 bankruptcy, often called a liquidation plan, and Chapter 13 bankruptcy, often called the debt restructuring plan.
The answer to this question primarily depends on whether or not you would like to keep your home. If you are fine with your home being sold to reconcile your debt with the mortgage company, Chapter 7 is probably the right choice for you. If you would like to remain in your home, then Chapter 13 is your desired filing status.
When a person finally decides to file for bankruptcy relief, they could run into a few obstacles. For example, some people may decide to accumulate more debt thinking they could file it with their bankruptcy. Some ignore their debts, try to pay back family and forget or ignore the lawsuits the creditors have filed against them. Another mistake people make is not being fully honest and upfront about their debt with their attorney.
If you need to update your bankruptcy case with information you may have forgotten or didn't know to disclose please call us at +1-919-646-2654.