Bankruptcy can be a way to get a new start after debts from being unemployed, getting a divorce or having major medical bills have become too much. However, not all bankruptcy filings are alike. The two most common types of bankruptcy in the U.S. are Chapter 7 and Chapter 13, but there is a world of difference between the two. The one that's right for you will depend on your current income, your assets and the extent of your debts.
Bankruptcy is not just for the young. A fresh start may be necessary for a number of reasons. Many senior citizens find themselves deep in medical debt as advanced age takes its toll on the body. There are benefits to filing Chapter 7 bankruptcy and it can help you enjoy your retirement years.
Wipe out unmanageable debt Save your primary home Protect your income and retirement accounts Bankruptcy Basics
Bankruptcy is often seen as a borrowers' last resort when it comes to permanently addressing debt issues. However, prior to considering one of the bankruptcy's chapters, many of those individuals try to come up with and apply debt-reduction strategies that are often costly in the long run. A mere bankruptcy filing removes all debts instantaneously, and protects from creditors' harassment. There's no other debt relief program that offers borrowers better benefits. This article lists two errors you must never make if you've decided to file for a bankruptcy chapter.
In a dire financial situation, it may seem like the best option to walk away from your home if the foreclosure process has begun. But before you make a decision, you need to understand the true consequences of foreclosure.
A foreclosure on your credit report can drop your credit rating by as much as 200 to 300 points in some cases. A fabulous credit rating of 760, dropped to 560 or below, makes buying a home, leasing a vehicle, or even getting certain jobs a challenge.
If you are having some type of financial difficulty and find that you need to take some measures in order to get yourself back on financial track, you may consider filing for bankruptcy. There are other options as well if you don't have severe financial issues, like debt consolidation or credit counseling, but if your situation is pretty bleak and you find yourself struggling to pay the bills, bankruptcy may the the answer.