Don't make the common mistake of filing for bankruptcy later than you should
Credit card delinquencies have risen to levels not seen in years. This trend reflects both the rising amount of household debt and the increasing tendency of banks to lend excessive amounts (e.g., through very high spending limits on cards), despite a borrower's apparent inability to repay same.
Both Chapter 7 bankruptcy and Chapter 13 bankruptcy can offer relief from many types of unsecured and other debt, as well as help to reduce financial pressure from creditors that can reduce the quality of your life in a number of ways. However, bankruptcy's benefits are less certain for taxes than other types of debt. Just about everyone has heard of the saying about death and taxes being the only certain things in life; to a great extent, that saying is true. If you are behind on your taxes, it doesn't mean all hope is necessarily lost, but timing can make a big difference when it comes to how much of your tax debt can be eliminated with a bankruptcy.
Living under a heavy burden of debt can be incredibly stressful. Most people feel strongly about making good on their financial obligations, and will go to great lengths to climb out from under a mountain of debt. While attempting to repay outstanding debts makes sense in many cases, individuals should be mindful of how they approach debt repayment. When faced with large amounts of debt, many people are tempted to turn to their retirement accounts-whether IRA, 401(k), 403(b), 529 or pension--as a means of repaying their financial obligations. However, doing so can be financially devastating, both in the short and long term.
Making ends meet is difficult enough. However, there are many people who struggle under an extremely heavy debt load, and getting out from under that financial burden is or should be a top priority. If you or someone you know is in this situation, then perhaps debt relief should be at the top of your New Year's resolutions list. If you are considering debt relief options, the following information may help you make 2017 the year you are finally liberated from an unmanageable debt burden by filing for personal bankruptcy.
Living under a heavy burden of debt is difficult. Many people feel stuck in their financial circumstances, and are unsure of how to dig themselves out of a dire situation. This sentiment is especially common around the holidays. For many in these straits, filing for bankruptcy and getting a "fresh start" may be the best possible course of action. Once the decision is made to seek bankruptcy protection, a huge sense of relief often follows. However, in order to insure your bankruptcy yields the desired results-the elimination of your debts--it is prudent to avoid certain actions before you file. The following tips are offered to assist individuals and families as they prepare to file for bankruptcy.
When you are having financial problems, you may feel that there is a stigma attached to filing bankruptcy. As a result, many people try other options first, such as borrowing money on available home equity credit lines, cashing out retirement accounts or even borrowing money from family or friends, before considering bankruptcy. Unfortunately, in reality, doing any of these things instead of filing bankruptcy can come back to haunt you.
If you are deeply in debt, the feelings of fear, guilt and failure can quickly take over. Unfortunately, when this happens, it is easy to become paralyzed by your feelings and do nothing to solve your problem, even though this is the time that you need help the most.
If you are hopelessly struggling with debt, you may be reluctant to seek the bankruptcy relief that you need, because you are afraid that it will ruin your credit. Although bankruptcy will likely negatively affect your credit score in a significant way, its effect is immediate and temporary. In the long run, you will find this alternative better than doing nothing and letting your financial problems get worse, which can harm your credit score more than bankruptcy could.
It's altogether possible that Bankruptcy can be effectively used to eliminate or reduce your credit card, medical bills or other debt (known as "unsecured debt"), depending upon your complete financial situation and the type of Bankruptcy you can file, while still allowing you to keep your house and car.
For example, if your home has little or no equity (i.e., the value of your home is not much in excess of what you owe), and depending upon your income, you may be able to file a Chapter 7 Bankruptcy, keep your home and car, and completely eliminate your other debts.
If your home has considerable equity, and/or your income is too high to qualify for a Chapter 7, you may still be able to file a Chapter 13 and reduce or even eliminate some of your other debts. The amount of debts you would need to re-pay, if any, in a Chapter 13, would depend principally upon your disposable monthly income, as determined by law. The re-payment period would be in a court monitored re-payment plan over 3-5 years. Even if you would be forced to make payments on your other debt, The Chapter 13 would "freeze" the debt as of the date of your filing. No further interest or penalties would accrue, and once you completed your Chapter 13 plan, any amounts still unpaid would be discharged/eliminated by the Court.
Let us examine your particular situation, FREE OF CHARGE, to properly advise you of your available options, and show you how the Bankruptcy laws can help.