Bankruptcy
It's time to consider bankruptcy if your life has been taken over by looming foreclosure, constant badgering phone calls from creditors, lawsuits or garnishments of your wages or property.
Or maybe your debt has you trapped due to the amount of each payment and the extent of the debt. There are many kinds of debt that can get you into these situations, including medical bills, credit card balances, falling behind on your mortgage, payday loans, loans and back taxes owed to the government and even car repossessions.
Once you find yourself in this kind of situation, you can lose control over your life. You are harassed and/or your money or property is taken from you, regardless of whether you can manage the loss along with your other financial obligations. Beyond the stress of going through this financial situation itself, the pressures and difficulties it causes can put additional stress on your work life and home life.
In many cases, bankruptcy is the answer to your financial burdens. It can help you stop the phone calls and other actions against you. It can take you out of a hopeless situation and get you on track again.
What do I choose??
There are two primary types of bankruptcy individuals can file for: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.
With Chapter 7 Bankruptcy, your property or car might be sold, depending on their value, to pay part of your debt. Often in chapter 7, you can keep all of your assets.
With Chapter 13 Bankruptcy, you have a payment plan you follow for three to five years where you pay a portion of your debt over time, after which the rest of your debt is discharged. Often the portion of your debt you are required to pay is a very small percentage of your total debt. You are not required to give up your assets regardless of value in a Chapter 13.
