Sunday, December 20, 2020

Filing For Bankruptcy

There are many reasons why people file for bankruptcy. Some may be due to mortgage loans that go into default; others may be for medical bills that cannot be paid and some may be due to no or insufficient income to pay back accumulated debts. Whatever the reason you have taken out loans, there is a way that you can lower your debts by filing for bankruptcy. Contrary to what you may have heard, bankruptcy cannot help you immediately clear your debts; however, it can make you free of them without having to pay them back in full. There are two basic ways of achieving this. The first way is a debt consolidation loan, which by consolidating your debts allows you to pay them back at lower interest rates or with lower monthly payments. You are also given a period of time to pay back this equity release loan like regular obligations. After you have paid back your loans you would have a certain amount of equity in your home, which would leave you to pay off the consolidated debt. Another way that you can lower your debt is by filing for bankruptcy. You will need to disclose all of your debts as well as the money that you have that you can pay back and the property that you have within the bankruptcy. If you have a reasonably large amount of equity within your home, filing for bankruptcy may be the only way to get rid of these debts. Every state has its own rules, but some states will require mortgage lenders to keep their priority status. Some states will eliminate these taxes and other demands, but this may vary.

In order to file for bankruptcy you must first file with the state in which you reside. Since so many people are filing for bankruptcy every year there are different rules in place for different states. This means that the rules for bankruptcy for every state are different. This is why you will need to hire the quality attorney that will represent you to help you through this process. They will help you to list all of your debts. The attorney will also help you to decide which ones are unsecured and which ones are secured. Unsecured debts include things such as credit cards and medical bills. Secured debts include home mortgages and car loans and these cannot be cleared through any form of debt relief. Once you file a petition you will soon be receiving a statement of your case. The statement will give you more information about how the case will proceed and when it will be resolved. After the debts that you cannot pay are cleared you will be required to complete a repayment plan that you and your attorney will work out. Once the repayment plan has been completed a discharge will be released, and payments can be made toward the balance of the debts, or removed entirely.

Filing for bankruptcy is a very stressful and difficult time. You may find that you have to delay eliminating this debt, so don't get yourself into that kind of problem. Talk to your lawyer about how to resolve your financial difficulties so that you can get your life back on track. By doing so you will get rid of your debt and get yourself back on the road toward financial stability.

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