Falling into debt is a slippery slope that can wreak havoc on your finances and mental health. It can be a daunting task to try and get out of debt, especially if you have been unable to pay your debts for months. The fear of legal action, constant phone calls and harassment from creditors, and the feeling of helplessness can be overwhelming. At this point, many people turn to bankruptcy as a solution.
Most people assume that chapter 7 bankruptcy is the best route to take when they file. It has the advantage of eliminating debt quickly and completely. It's not the right type of bankruptcy for everyone, though. Read on to find out situations that may call for filing chapter 13.
The Filer Has Too Much Income
Chapter 7 has income restrictions for filers. Their income is compared to the median income in their state and that can cause many not to qualify for filing chapter 7.
Once you have decided to file for bankruptcy, you may be eager to get started. However, there are certain situations that call for pausing your actions for a brief time. Read on so you'll know when to wait and when to act.
Luxury Purchase Problems
Credit cards are a large part of why many decide to file for chapter 7. Most credit card debt is completely discharged with chapter 7. Your credit card use before you file could cause you problems, though.
As you get older, your thoughts might turn to what will happen to your estate after you die. You might want to protect your wealth and assets from being lost or misspent. You also may have specific plans for how you want it to be executed and dispersed after your death.
However, you cannot simply rely on your friends or family members to carry out your plans precisely. Instead, you can plan out and leave the execution of your estate to an experienced local probate lawyer.
Most folks who've interacted with the American legal system will come away with the impression it moves very slowly. Talk with a bankruptcy attorney, though, and you might hear something quite different. This article explores how quickly bankruptcy tends to move, when it might go slowly, and what some intervening factors may be.
Bankruptcy Is Usually Fast
Speaking in the broadest sense, a bankruptcy lawyer will tell you the process is almost always fairly speedy.
