Do you ever feel that your bills are getting bigger and bigger and your life is getting out of control? You do not sleep and you have no idea where your next dollar is going to come from. How you are going to eat, because you spend every penny sending all your credit cards minimum payments and barely getting your bills paid; this in turn will take you longer to pay off your credit card debt.
In today’s economy you hear about large businesses such as Circuit City and in some cases some airlines that have had to file bankruptcy and close some stores. So, if it is that hard for these companies to survive how can the simple person survive.
Bankruptcy is specially designed for the consumer and business’s to eliminate their debt or considerate them with the protection of the bankruptcy court. There are two types of bankruptcy:
– Chapter 7 basically in chapter 7 property is sold and is sold to pay off as much debt as possible while leaving you with enough to start over. In many cases there is nothing to sell, so they discharge your debt.
-Chapter 13 this is basically a consolidation under protection of the courts. Which you repay all of your debts within 3-5 years.
Non-Dis-chargeable debt under the bankruptcy laws, there are several examples of certain debts that can not be discharged under the law. Some of these examples are alimony, child support, most income tax debt, student loans and debts that you incur due to personal injury or death due to driving while drunk.
Things that you really should consider before talking to an attorney.
- Research bankruptcy
- Consider a simpler alternative
- Make sure you are eligible
- Learn what debts won’t be canceled
- Consider what will happen with your home.
- Will you loose your Auto or other property?
- Will credit cars be paid off?
- Will your IRA or 401(K) be safe?
- Will your cosigners be stuck with your debt?
- Consider your personal life.
The new bankruptcy law has or may have made it harder for people to file Chapter 7. The law is reviewing higher incomes, and a few filers will no longer be able to file Chapter 7.
In all forms of bankruptcy under the new law Chapter 7 and 13 all debtors will have to go through credit counseling before they can file a case and before the case is over they need to go through a counseling on budgeting and debt management before any debt will be wiped out. Find top San Diego, CA Bankruptcy attorneys near you after checking the reputation at online sites. There should be proper management of the budget and documents of the clients.
The most important thing for you to consider when you deciding to file bankruptcy is your income, it is important to measure your “current monthly income.” In this particular point I would recommend to discuss this with a bankruptcy attorney.
Bankruptcy is a developing issue, not only with consumers but with the large companies as well. This is not unusual that people over extend themselves, and know you are not alone. You will sleep better and feel better knowing that your bills are not looming over your head.