Involuntary bankruptcy is a legal avenue for creditors to force a person or business into bankruptcy proceedings when they cannot collect debts. Unlike voluntary bankruptcy, where debtors initiate the process, involuntary bankruptcy occurs when creditors petition the court. Involuntary bankruptcy proceedings can be a powerful tool for creditors seeking to recover debts from reluctant debtors. […]
When you file for Chapter 13 bankruptcy, a form of repayment bankruptcy known as a reorganization, your credit score will be negatively impacted, and this information will remain on your credit report for seven years. In a Chapter 13 bankruptcy, you adhere to a court-approved repayment plan that spans three to five years, during which […]
When initiating bankruptcy proceedings for the first time, it is imperative to grasp the lexicon employed during the procedure. Many individuals often find themselves perplexed by the disparity between “dismissal” and “discharge” within the context of bankruptcy processes. 1. Dismissal Of A Bankruptcy Case Dismissal typically denotes that the court has halted all proceedings within […]
Let’s delve deeper into some critical aspects to provide you with a comprehensive understanding of avoiding the most common bankruptcy mistakes. Mistakes To Avoid With Personal Debts Repaying Family Members The law treats family members like any other creditor regarding repaying friends or a family member’s debts. The bankruptcy trustee can make a claim for […]
Federal bankruptcy laws are designed to help people who are overwhelmed by debt. If you cannot repay your debts, these laws allow you to start fresh, wiping out most of your debts through the different bankruptcy chapters. However, rules are in place to ensure that the process is fair and that everyone plays by the […]
Imagine your financial life is where you owe a lot of money to different people or companies, and it takes time to manage. You’ve heard about different bankruptcy chapters, which can help you eliminate most of your debts and give you a fresh start. Suppose you possess a residence, financial account, real estate investment property, […]
In the realm of bankruptcy, a distinct avenue known as “no-asset Chapter 7 bankruptcy” emerges, offering individuals a strategic approach to safeguard their possessions. This term underscores the notion that individuals undergoing bankruptcy possess no assets liable for liquidation by the bankruptcy trustee to settle debts owed to creditors. This article delves into the intricate […]
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 […]
