Filing for bankruptcy is a big step to take in life, and this is why you will be required to take a credit counseling course before you actually file. This course is designed to help you make the right decision with your finances, and it will teach you a lot of different things. Here are four things you should know about the course you will be required to take before you can file your bankruptcy paperwork.
In a Chapter 7 bankruptcy filing, most of your debts are discharged and you no longer have to worry about paying them. However, there are some instances in which a creditor might successfully challenge the discharge and you still have to pay the debt. If a creditor is challenging a debt, here is what you need to know.
Why Is the Creditor Challenging the Debt?
After you file for a Chapter 7, all of your creditors listed on your petition documents are notified that you are seeking a discharge of your debts.
In today's world, it can be easy to get into a lot of debt quickly. Many people have more than one credit card and it can be tempting to charge things that you want when you can't afford to buy them otherwise. Unfortunately, those charges all add up and can quickly turn into a nightmare with debt collectors calling you several times a day. One way to alleviate that financial stress is to file for Chapter 7 bankruptcy.
People who have a substantial amount of unsecured debt may find relief through bankruptcy. Chapter 7 bankruptcy can be used to discharge debt and alleviate the need to repay lenders. However, there are circumstances that can disqualify you from filing Chapter 7. Here are a few:
How much disposable income do you have?
Disposable income is the amount of money you have left over after your expenses are paid. It is calculated using your most recent six months of income.
Losing your home is never easy, but you can take steps to help alleviate some of the common stresses involved. Thinking ahead and setting both short term and long term goals, while also knowing what to expect, can help you recover more quickly from this difficult time.
Secure Your Living Situation
Your first goal for you and your family is to secure a safe living situation that is affordable and relatively comfortable.