When filing Chapter 7 bankruptcy, also referred to as the Fresh Start, a typical outcome is that the debtor, or bankruptcy filer, is discharged from liability for most unsecured debts.
Chapter 7 bankruptcy and Chapter 13 bankruptcy offer different forms of protection. If you’re facing a financial crisis, a local bankruptcy attorney can help you determine whether Chapter 7 bankruptcy or Chapter 13 bankruptcy might be the right answer for you.
Generally speaking, Chapter 7 bankruptcy is intended to wipe the slate clean by discharging unsecured debt—debts like credit card debt, medical bills, and unsecured loans. Chapter 13 bankruptcy, on the other hand, is intended to give a debtor time to catch up past due payments over a period of 3-5 years, while keeping secured property like houses and cars.
When things get tough financially, many people turn to companies that can provide them with a little bit of help. One
Yes! Most debtors are under the impression that they will not be able to own anything, such as a home or car, for a long period of time after filing bankruptcy. It is too bad that this myth deters people that really need the Fresh Start that filing bankruptcy offers from filing because it is not the case.
Typically, a bankruptcy filer can keep their exempt property and anything they acquire after their bankruptcy is filed.
However, property settlements, inheritances or monetary benefits such as life insurance that are recieved by the bankruptcy filer within 180 days after filing for bankruptcy, may or may not end up having to be paid to thecreditors if the property or money is not exempt.
Bankruptcy may not always be an avenue for complete tax debt forgiveness; however it may provide relief from levies and wage garnishments. The IRS and FTB can levy accounts and wages much easier and quicker than any normal creditor. Tax debt forgiveness through bankruptcy is a blessing to those who qualify.
Generally, your debts are your debts only and only you are responsible for them. If you file for bankruptcy, your spouse is not responsible for your debts and will have no effects on your spouse.
Generally, married couples maintain two separate credit records and histories, so therefore, if only one spouse files for bankruptcy, it will not affect the other and his/her credit rating will not be affected. However, if your spouse co-signed or guaranteed your debt or if your spouse shares a joint account with you, then s/he will also be affected since this would become his/her debt too.
