One of the most powerful aspects of filing for bankruptcy relief is that it automatically stays, or stops, all debt collection actions immediately. This feature gives you much-needed time and space to get your finances back in order.
Landlords have the possibility of being able to maintain evictions when a tenant has declared bankruptcy and stops paying rent. However, in many cases Chapter 13 bankruptcies can be used to assist a tenant in catching up on back payments and remaining in the leased property.
Usually referred to as “wage earner” bankruptcy, this type of bankruptcy has become very popular over the years because of the way it deals more comprehensively with people’s financial problems. Like all bankruptcies, Chapter 13 cases can get rid of unsecured debt, but what makes Chapter 13 cases unique is that they can also be […]
This is traditionally referred to as “straight liquidation” bankruptcy. This constitutes a complete discharge of your unsecured debt and is most useful if you own a limited amount of assets – and you are primarily only interested in getting rid of unsecured debts (such as credit cards and medical expenses.)
Once you succeed in getting a credit card, you might be hungry to apply for many more cards. Not so fast! Having too much credit may have contributed to your debt problems in the first place. Ideally, you should carry one or two credit cards. Banks want to see that you can handle more than […]
Certainly! Many people are actually able to obtain credit while their bankruptcy is still pending. If you handle new credit wisely, you can begin to improve your credit score almost immediately.
To avoid getting into financial problems in the future, you must understand your flow of income and expenses. Some people call this making a budget. Others find the term budget too restrictive and use the term spending plan. Whatever you call it, spend at least two months writing down every expenditure. At each month’s end, […]
There is no doubt – your credit score will go down as a result of a bankruptcy filing, but a credit score is only one component lenders use in determining your credit worthiness. Remember, lenders will also look at your income and your debt burden. If you have missed payments, have accounts in collections, have […]
If you file for bankruptcy protection and relief, the case information is allowed to remain on your credit report for up to 10 years – but this is often times not the case. Something important to consider when filing bankruptcy is the immediate fresh start you receive from a bankruptcy discharge which allows you to […]
There are many unfounded claims being made by agencies that do not have the right to practice law. The Federal Trade Commission recently warned of these “credit repair” scams. The truth is, these companies depend on your creditors voluntarily agreeing to reduce your debt in exchange for a lump sum payment. Unlike legal debt relief, […]