3 Factors To Consider Before Ruling Out Bankruptcy As An Option For Debt Relief
Filing for bankruptcy is something a lot of people want to avoid, primarily because of the negative effects it can leave; however, using bankruptcy to get relief for your debts might turn out to be the best decision you ever choose. If you are on the fence about this and are trapped with loads of debt, you may want to consider the following three factors before you toss out the idea of filing for bankruptcy.
3 Ways To Repair Your Credit After Chapter 7 Bankruptcy
When you are so far in debt that you can't really see any way to get out of it, filing for Chapter 7 bankruptcy may be a good option for you. Doing that will allow you to set up a plan that will let you pay back your creditors and start to get out of all that debt. However, filing bankruptcy can also cause you further credit problems. One reason for that is that it can take up to 10 years for a Chapter 7 bankruptcy to come off your credit history.
Student Loans: Are There Legal Ways To Get Out Of Debt?
Drowning in student debt and don't know what to do? Well, first of all, you aren't alone. In fact, there are 40 million Americans who have some level of student loan debt, with the average borrower having four loans. These loans aren't always easy to pay back, especially with everything else that you need to pay on a regular basis. Luckily, there are options available to you that can have your loans partially or fully forgiven, discharged or cancelled:
Discharging Alimony During Bankruptcy
If you are unable to pay your debts, then bankruptcy allows you to discharge them so that you can start a fresh financial journey. As with other legal processes, however, there are exceptions to this rule. There are some debts that you cannot discharge, and alimony (spousal support after divorce) is one of them. Whether you are filing for Chapter 7 or Chapter 13 bankruptcies, you will have to continue servicing your alimony payments.
Chapter 7 Bankruptcy: Federal Tax Debts And The Automatic Stay
An automatic stay is one of the benefits of filing for Chapter 7 bankruptcy. The stay can help keep creditors from taking legal action until your bankruptcy is completed. If you have a federal tax debt, here is what you need to know about how an automatic stay can impact your debt. What Is an Automatic Stay? The stay immediately goes into effect when you file for Chapter 7 bankruptcy. The stay stops creditors from taking you to court or taking any other actions to collect on the debt.
