One of the more challenging obstacles for folks to try to overcome in bankruptcy is dealing with secured debt. For most debtors, secured debts mostly refer to mortgages and car loans, although they can include almost any loan that's backed by collateral. If you're trying to figure out how to hold onto such items while also restructuring your debts, pursuing a Chapter 13 bankruptcy will probably be your best option. Let's take a look at how this might be accomplished under the Chapter 13 bankruptcy law.
When you declare that you are unable to pay your debts, you are declaring bankruptcy. This word has a negative connotation but for millions of filers, this act provides an opportunity for a fresh start. Declaring Chapter 7 bankruptcy also places your personal financial situation in the hands of the bankruptcy trustee who oversees your case. This means that some of your personal belongings could be subject to seizure. This scary issue should serve as a point of education only because most consumer filers don't lose their property.
Bankruptcy is something many people turn to when they are experiencing major financial problems with debt, and many people find that Chapter 7 seems to be the more favorable choice when compared to Chapter 13. While there are times when Chapter 13 is a more advantageous option for some people, here are the top three reasons many people prefer Chapter 7 over Chapter 13. It is faster One key difference between Chapter 7 and Chapter 13 is the amount of time it takes from the point in which you file the documents until the point where the court discharges the case.
After talking to a lawyer about your financial situation, you may decide that filing for Chapter 7 is a good move for your future. If so, there are several key things you should expect right after you file, and here are two of those things. Your Creditors Will Stop Contacting You Any creditor that you list on your bankruptcy documents will receive notification from the bankruptcy courts, shortly after you file, about your bankruptcy filing.
Sometimes things can happen in your life that can lead you down a financial path of negative consequences. This path your led down can become so bad that you can't see the light at the end of the tunnel. When you find yourself in this position you may feel out of options. However, there is an option available to you that can help you to get out of some, if not all, of that overwhelming debt that's causing you so much stress.