When it comes to bankruptcy laws, it can be easy to make a mistake. Failing to follow the rules might have your chapter 7 bankruptcy case over before it begins. Read on to find out about three issues that filers commonly fall prey to during the bankruptcy process.
You Use Your Credit Cards With Abandon
You may be surprised at how easy it is to get on the wrong side of the bankruptcy court and your creditors.
Do you have student loan debts that you are unable to repay? If so, you may be looking into bankruptcy as a solution to your problem. Here is what you should know about using bankruptcy to get rid of this expensive debt.
What Will Happen To Your Student Loans?
The method of bankruptcy that you use will determine what happens to your student loans. Using the Chapter 13 method will actually put student loans into a repayment plan.
For many, the decision to file for bankruptcy is a difficult one and one not taken lightly. Financial circumstances that seem insurmountable can make even the most responsible among us desperate enough to seek debt relief via bankruptcy. Being prepared for the practical issues that surrounds bankruptcy is vital, but don't neglect to pay attention to your emotional issues as well. If done correctly and with thoughtfulness, your bankruptcy can represent a learning experience and the fresh financial start you need.
You may need the help of a debt relief attorney if a credit card company or a collection agency is suing you. Whether an attorney negotiates with the creditor or debt collector to settle the debt for less than what you owe or raises a defense to the lawsuit, it's important to know your rights, especially when it comes to providing a defense.
Watch the Time
Although the law varies from state to state, if a credit card company has waited too long to file suit against you and the statute of limitations has passed, the debt may be too old to collect.
If you own your home and have fallen behind on mortgage payments along with your other bills, you may be facing foreclosure if you don't file for bankruptcy quickly. Should you reaffirm your home or make plans to move after your Chapter 7 discharge is granted? Read on to learn more about reaffirming your home in bankruptcy, as well as some factors you'll want to consider when deciding whether this is the right decision for you.
