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Filing bankruptcy is a good move to get protection under the law from collection agencies or lenders. While this is a rather large step to take, it can allow you to save yourself from financial ruin. Making the decision to file can be difficult. You need to weigh the pros and cons. Understanding the protections that Chapter 13 offers can help you with making the choice to file. The automatic stay The main protection offered to you under Chapter 13 comes from the automatic stay.

Even though a Chapter 13 filing will lead to a repayment plan with the goal of repaying your debts, you may still discharge some debts in the process. Once you complete the repayment plan, the court will remove any dischargeable debts. But it is important to understand that you cannot discharge all debts in bankruptcy. Debts you cannot discharge The court will consider which debts you can discharge and which you cannot when designing your repayment plan. You will usually work to repay the debts

Debt collectors must follow the Fair Debt Collection Practices Act (FDCPA) in order to ensure that they collect their money ethically. However, not every debt collector will abide by these standards. It is important to recognize debt collector misdemeanors and misbehavior when it happens. Breaking down a collector’s threats The Consumer Financial Protection Bureau discusses debt collector behaviors. Generally speaking, debt collectors will abide by the rules and regulations of the FDCPA. Sometimes, however, they may attempt to trick or deceive a person they wish

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

Your home is a source of pride and may also act as your biggest investment. When you face financial hardship, making that monthly mortgage payment may become a high hurdle to clear. Is a change to your mortgage payment a viable option? There are a couple of avenues homeowners may want to consider for payment relief. A mortgage modification may provide you with the help you need to get your finances back under control. Discover how this or other mortgage options may provide some relief.

When facing mountains of debt that you cannot overcome, the last thing in the world you want to deal with on top of that is the hounding of a debt collector. Unfortunately, debt collectors are not always known for their kind methods of handling debtors, either. In addition to classic harassment tactics, debt collectors may also implement misinformation and miscommunication in order to get what they want. Thus, it is something for you to keep an eye out for. Manipulation of information The Consumer Financial

A lender sending you a notice for defaulting on a mortgage generally means that your account has not received a payment for 60 days. As noted by U.S. News and World Report, the next step your lender takes may include filing a lawsuit to begin foreclosure. Creditors follow their own timeline to determine when borrowers have defaulted. Your loan’s terms most likely define how many months can pass without payment. Some mortgage companies allow two months. Credit card issuers, however, often go up to six