Setting My Finances Straight
If you're getting ready to file for bankruptcy, be aware that it is a complicated process that will require the help of a lawyer to navigate. Part of that is due to all the terminology used in bankruptcy proceedings, much of which you'll be hearing for the first time. Here are some terms that you need to be aware of before proceeding with your case.
Once you start the process of filing for bankruptcy, the court will grant you an automatic stay.
Debt can make life unbearable, especially once the creditors start calling. Unfortunately, if you ignore the phone calls, your creditors will reach out to your family, friends, and even your employers. If you have a steady income, and want to get out from under stifling debt, Chapter 13 bankruptcy may be the answer you've been looking for. Chapter 13 bankruptcy is for people who have the financial ability to make their payments, they just need a little time to get caught up.
Traditional bankruptcy filings can come with hours spent filling out reams of forms, but there is a little-known, but quicker, method to get your filing accomplished. If you need to take fast action, read on to learn more about filing for an emergency petition.
Who Needs an Emergency Petition?
Without a doubt, one of the major benefits of a bankruptcy filing is the ability to employ the legal maneuver known as the automatic stay.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was created to stem perceived abuses by some people who were filing for Chapter 7 bankruptcy. Chapter 7 bankruptcy allows you to avoid paying back many of the creditors you owe money to, because you claim you don't have the money or resources to pay them back. Legislators felt that some people were intentionally getting into debt and then using the bankruptcy laws to escape paying what they owe.
You may not like the idea of filing bankruptcy because there tends to be a certain stigma attached to the word. However, bankruptcy can actually be a great way for you to go if you have found yourself in over your head financially with your credit score continuing on a dangerous downward spiral. You can learn about some of the ways bankruptcy can help you by reading the information provided to you in this article.
After I realized that I was way behind on my rent, I knew that I had to do something. I sat down with all of my bills, and I started evaluating my personal financial situation. Things were bleak. I realized that in addition to being sent to collections by several places, I also had a terrible credit score. I didn't know how to cope. However, a friend of mine suggested meeting with a bankruptcy attorney, and so I sat down to talk with him. It was amazing to hear how much things could improve by declaring bankruptcy. Overnight, creditors stopped bothering me. This blog is all about declaring bankruptcy.