Imagine you’re driving down a road of financial difficulties and decide to take a detour called “Chapter 7 bankruptcy” to help you get your car payment back on track. This detour has a particular signpost called a “reaffirmation agreement.” This agreement is like a contract that gives the debtor and your creditors (the people you […]
If you’re a homeowner and you find yourself in a Chapter 7 bankruptcy situation, the idea of mortgage reaffirmation might arise. Your lender might send a reaffirmation agreement to your bankruptcy lawyer, but the question is: should you sign it? Benefits of Reaffirming Your Mortgage Debt A Reaffirmation Agreement is like a promise […]
Declaring bankruptcy erases certain debts, so you don’t have to repay them. However, if someone else, like a cosigner or joint account holder, co-signed or is responsible for the debt with you, they still have to pay it not to be considered in default. Here’s what happens: If you file for Chapter 7 bankruptcy, the […]
Business owners often proceed with creating their company, forming partnerships, securing loans, and entering the market without considering potential risks. They tend to believe that merely incorporating the business shields them from liability. Additionally, relying on the assumption that losses are distributed among partners according to the company bylaws, they perceive the risks as proportionate […]
Bankruptcy is a way for honest people struggling with debt to get relief and a fresh start. It’s meant to help individuals facing challenging situations like losing a job, having big medical bills, divorcing, or dealing with a disability. But sadly, some dishonest people misuse the bankruptcy system. They might have enough money to pay […]
When facing financial difficulties, individuals in distress may view their retirement accounts as a convenient source of funds, using retirement money and hoping it can spare them from resorting to Chapter 7 or Chapter 13 bankruptcy filings to regain control over their debts. Retirement accounts typically enjoy protection in bankruptcy, safeguarding them from being utilized […]
Bankruptcy And Tax Debt Within the realm of bankruptcy, taxes are generally classified as “nondischargeable priority debt.” It indicates that bankruptcy cannot eliminate tax debts, and the repayment of such obligations is prioritized over the claims of other creditors. Nevertheless, there are situations where taxes can be categorized as “dischargeable debt,” meaning they can be […]
Bankruptcy represents a tradeoff. It provides relief by eliminating debt obligations or reducing unmanageable debts, but it also signals to lenders that you pose a credit risk, dropping your credit score. This decline or bad credit can make it challenging to obtain loans, credit cards, and mortgages in the immediate future. Bankruptcy can significantly impact […]
Consider various financial alternatives if you face difficulty handling your debts. When comparing debt consolidation and bankruptcy, it is crucial to grasp the disparities between these two methods and their advantages and disadvantages. Debt consolidation entails obtaining a new loan or line of credit to repay your debt under potentially improved terms. On the contrary, […]
People filing for bankruptcy must maintain a certain standard of living to function as productive members of society, and thus are entitled to protect various real and personal property under the bankruptcy code. Bankruptcy exemptions protect these essential possessions, preventing the bankruptcy trustee from seizing and selling them to satisfy creditors’ claims. Bankruptcy exemptions allow […]
