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After bankruptcy, most lenders will not give you a traditional credit card right away. You must rebuild your credit and prove to lenders that they can trust you as a borrower. Secured credit cards can help you build your credit again. Like traditional credit cards, secured credit cards help you build your credit score if you practice responsible habits. What is a secured credit card? Unlike a traditional credit card, the secured credit card requires you to make a deposit. Your deposit serves as the

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

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

If you are thinking about filing for Chapter 7 bankruptcy, you probably have many different questions. Aside from legal issues related to bankruptcy, you could feel hesitant because you think that people will look down on you for filing a bankruptcy petition, or you could worry about how bankruptcy might affect you years down the road. It is important to understand that many people file for bankruptcy each year. Reviewing statistics on Chapter 7 bankruptcy can help shed light on the prevalence of these cases

When you file for a chapter 7 bankruptcy, you will be working with a bankruptcy trustee. This person will have a great deal of leverage in your case, so it helps to understand what his or her role is. Your trustee will monitor your case, recover property from your estate and distribute assets to creditors. This individual is not a lawyer and cannot represent you in any way, but he or she is not your enemy either. How your trustee can help you Your trustee

Chapter 7 bankruptcy may discharge most consumer debts including your outstanding medical bills. According to the U.S. Census data, about one out of every five U.S. households has unpaid medical debts. As reported by Credit.com, health care expenses contributed to nearly 67% of bankruptcy petitions submitted in 2019. If you paid for your family’s health care treatments with credit cards, the court may discharge these debts regardless of their amounts. When could medical debts end up in collections? Medical bills may contain errors. Professionals estimate

No doubt it is with a feeling of relief that you have decided to file for bankruptcy protection. However, if you want the bankruptcy process to go smoothly, you must be alert to potential problems. Here are five mistakes you must avoid. 1. Failing to list all creditors The law stipulates that you list all your creditors when you file for bankruptcy. Double-check to make sure you have not missed one. If you fail to list a creditor, your trustee may not discharge the associated