Bankruptcyoffers people who are overwhelmed by debt an opportunity for a fresh start through either liquidation (Chapter 7) or reorganization (Chapter 13). In both cases, the bankruptcy court can discharge cert
Filing a Chapter 13 bankruptcy first for medical debt. Sometimes if you will have ongoing large medical debt you may want to file a Chapter 13 while you are reaching recovery. If you filed immediately as a 7 you would not be able to discharge the ongoing claims you will have over the ne...
In general, bankruptcy may be the best option if you see no way to pay off your debts within five years, the amount of debt (excluding a mortgage) is more than 40% of your income, and if you’re paying as much as you can toward debts but not making real progress. One reason to ...
That year-over-year uptick in bankruptcy filings highlights the growing reliance on bankruptcy for those who are no longer able to manage their expensive debt. But while many people successfully navigate the bankruptcy filing process, not every case reaches a favorable conclusion. Having your ...
“According to the Kaiser Family Foundation (KFF),100 million people in America struggle to pay their medical bills. This includes folks who have insurance, whether independently or through an employer. In fact, medical debt is the No. 2 source of personal bankruptcy filings in the U.S. (af...
To get rid of unsecured debt, you’ll have to pay it off or consider bankruptcy to discharge your debts. When you take out a loan or other type of financing, you’ll typically have two options: secured or unsecured debt. The key difference is whether or not you need to put up colla...
Chapter 7 bankruptcy Filing Chapter 7 bankruptcy can discharge some debts through government liquidation of your assets. After your liquidated assets are counted against your unpaid debt, you’re responsible for paying the remainder of the debt. After your assets and the amount you could pay are ...
repaying what you agreed to pay, according to the bankruptcy plan you arranged with the court. A Chapter 13 case requires monthly payments for from three to five years. Discharge in Chapter 13 cases happens after the three to five years is up and all of the agreed-upon debt has been ...
Debt discharge: In Chapter 7 bankruptcy, eligible debts such as credit card balances, medical bills and personal loans can be discharged, meaning you are no longer legally required to pay them. Financial education: Many filers are required to complete financial literacy courses, equipping them with...
Not all debts are dischargeable, either — and it can be difficult to obtain credit, housing or employment after declaring bankruptcy. The bottom line Eliminating $30,000 in credit card debt is a significant challenge that requires time, discipline and commitment. However, with the right ...