Filing for bankruptcy is never pleasant. Some people get terrified when going through this process because the government holds your future in its hands. Deciding which bankruptcy path to go with can also be daunting. Take a look at these chapter 13 information and reminders before making your decision.
Advantages
The bankruptcy laws in place were designed to help people who have incurred debt in good faith, or with the intention to pay, but due to certain circumstances, are unable to pay. Given this, bankruptcy can help you:
* Stop or delay court proceedings, eviction or judicial auction.
* Avoid or delay the seizure of wages or property.
* In the time it takes a person to declare bankruptcy, their creditors cannot contact them, place a judgement, or seize their property, which includes his or her salary.
* Bankruptcy eliminates debts such as credit cards, medical bills, personal loans, etc. However, there are debts that cannot be eliminated such as student loans, alimony and child support, physical injury to others by driving under the influence of alcohol or drugs, debts for fraud, financial obligations as part of a criminal conviction, outstanding taxes in the last three years, and the like.
Disadvantages
Just like everything else, there are disadvantages. The cons associated with filing bankruptcy are:
* You incur additional expenses, especially if you use the services of a lawyer, like fees and rates, in addition to the courses required for credit counselling.
* Every bankruptcy is part of a public record, which means that everyone has access to this information and will know the amount of debt and who your creditors are.
* Your credit score will be affected negatively, and this, in turn, can reduce your chances of employment.
* If you gave goods or money to your relatives or friends in the past year, they may be forced to return them.
* Bankruptcy can remain on your credit report for up to 10 years.
Conclusion
Bankruptcy is not the best solution for everyone, which is why people need to consider the costs and consequences. And if you do decide that this is the best option for you, the first step is to consult a lawyer because of the complexity of the bankruptcy laws. For more details on chapter 13 information and reminders, visit Stlbankruptcyfirm.com today.
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