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Coming to the decision to file a bankruptcy can be stressful even when necessary. However, there are filing options available for people under differing circumstances. The most common are Chapter 7 and Chapter 13 bankruptcies and each has advantages. Advantages of a Chapter 7 bankruptcy A Chapter 7 bankruptcy allows you to eliminate certain debts without the need to pay them back. Some benefits include: The process is typically over within six months. You can start fresh with only the possibility of secured debts to

If you experienced a hardship that sent you into collections, bankruptcy may offer the opportunity to return to a solid financial foundation. While a trustee sorts through creditors and decides who gets what, a judge cannot discharge every type of remaining debt. Certain types of debts remain even after bankruptcy. The trustee can assist with restructuring them, but these non-dischargeable debts will not go away even if you abide by the bankruptcy terms. Learn more about what constitutes a non-dischargeable debt. What happens to federal

When you file for bankruptcy, you want protection from your creditors and the bill collectors that are hounding you. Fortunately, you can depend on the power of an automatic stay. What exactly is this and how can it help you? A power tool When you file for bankruptcy protection, you activate an automatic stay that provides a number of benefits. First, it protects you from creditor harassment. It also puts a stop to any lawsuit that a creditor, government agency or individual seeking money files

Contrary to the common perception, bankruptcy is not a punishment or a failure. Rather, it is an opportunity for you to start fresh financially. As a consumer, you typically have two choices for filing bankruptcy: Chapter 7 and Chapter 13. Each has its own eligibility requirements, but if you qualify for Chapter 13, it can offer some significant benefits. 1. Does not require you to liquidate assets To liquidate assets is to sell them off to make money to pay off your debts. According to

The United States Bankruptcy Code allows debtors to discharge some types of tax debt in bankruptcy. The amount of taxes you can discharge also depends on the Chapter of bankruptcy you file. You cannot discharge trust fund taxes or taxes withheld from other parties. You can discharge income taxes if you meet specific requirements. Unsecured income taxes If you owe taxes from previously filed income tax returns, you can discharge the debt in a Chapter 7 bankruptcy if there is no lien on your property

When you file bankruptcy, the court can wipe out all qualifying debts. However, if you have the court erase a secured debt, such as a car loan, the lender can repossess the item. To avoid losing your car, for example, you can reaffirm the loan. According to Findlaw, this process will allow you to create a new agreement that bypasses the bankruptcy process and saves your car. The details A reaffirmation agreement is simply you committing to continue paying the terms of your loan. It