The holidays are a tough time for many people, not only because of the emotional toll they can take but also because of the financial impact. Some people decide that they want to start January off with a fresh financial picture. If you are drowning in debt, you might be considering bankruptcy.
A personal bankruptcy has many benefits, but most people focus on two. One of these is that you will be relieved of your personal debts. The other is that your creditors won't be able to harass you. These are both important, but you shouldn't let them cloud your judgment. We want you to think carefully about how the bankruptcy filing might change your finances now and how it might impact them in the future.
One of the primary questions that people have when they are going to file for bankruptcy is what chapter they will file under. The two primary forms of personal bankruptcy are Chapter 7 and Chapter 13. Both of these can offer the relief that you need, but they do have some very specific differences.
Before you breathe a massive sigh of relief after your bankruptcy, you need to understand that disaster can strike in the same place more than once. One of the largest mistakes we see Detroit residents make in the aftermath of bankruptcy is returning to their previous spending behaviors.
Among the things debt troubles can lead to is a lowering of one’s credit score. A lowered score can have many negative implications for a person. For one, it could expose him or her to significant additional costs in the future.
Debt and missed payments have mangled your credit score. You know that bankruptcy is your only option. It is going to erase your debt and give you a fresh start.
A lot of senior citizens are finding themselves in a place that they simply never expected to be at their age: bankruptcy court.
You file for Chapter 13 bankruptcy. You still have a job, so you plan to use Chapter 13 to pay back your debt over five years. The monthly payments are $1,500. You can just make that work with all of your other bills and expenses. It's tough, but you're dedicated.
If you've found yourself in financial trouble, bankruptcy might be the best option. At that point, however, you're bound to be asked whether or not you intend to reaffirm any of your old debts.
Contrary to popular belief, bankruptcy seldom means having all your property and assets stripped away to pay your debts. For most people, that simply isn't the reality.