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Chapter 7 Bankruptcy How to Decide if Bankruptcy is the Answer

It is never an easy decision to file for bankruptcy, but for those who do decide to employ it, it can be a wise move. However understanding the process of bankruptcy can be just as hard as knowing if and when you need to file for it. Bankruptcy isn’t for everyone. If you’re considering filing, you will need to know the ins and outs of the process, what it means, and how it will affect your future. You also need to know and understand all of your options.

Chapter 13 bankruptcyConsumers in Savannah have the option of two different types of bankruptcies, depending on the  facts and circumstances surrounding the financial difficulty. A Chapter 7 or a Chapter 13 bankruptcy both serve essentially the same purpose, but there are distinct differences between the two. Before a Savannah consumer can determine whether a Chapter 7 or a Chapter 13 bankruptcy is appropriate to his or her circumstances, a basic understanding of both is necessary.

Chapter 13 Bankruptcy Savannah GA Versus Chapter 7 Bankruptcy

The basic difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy finds its best expression in the differing manner in which these two cases ultimately are resolved. Through a Chapter 7 bankruptcy, a consumer obtains a discharge or liquidation of most, if not all, of his her debt. On the other hand, in a Chapter 13 case, a consumer maintains responsibility for most or all of his or her debt. However, in Chapter 13, despite maintaining ultimate responsibility for debt, obligations are reorganized to provide the consumer a means for which a reasonable monthly payment can be made to the bankruptcy trustee, which is then distributed to the individual debtors.

interest ratesIf you are like the average consumer, there are at least a couple of credit cards with active balances. You also have a car loan and a personal loan in the mix. After deciding that reworking the budget and paying off those debts is a priority, the next question is which you should tackle first.

Student DebtPaying Off Your Student Debt: Doing the Minimum or Going for Extra Credit?

Millions of people have student loan debt on their hands, averaging at around $33,000. It's no wonder that so many are wondering if they should pay off their loans quickly, or take it slow to build their credit score. It can be a major problem for Americans in their twenties and early thirties who find themselves unable to afford the minimum payment on their student debt, and end up paying hundreds of dollars a month extra to get rid of their loans more quickly isn’t plausible. On the other hand, those who do pay these loans off in less time end up saving thousands of dollars in interest over the life of the loan. 

 

FICO ScoreYour credit score is one of the most important numbers in your life. It can help you get loans at the best interest rates, get insurance at the lowest rates and it could play a role in helping you get a job or even something as simple as financing a cell phone. Let's take a look at how you can achieve and maintain the best credit score possible.<--break-><--break->

Chapter 7 Bankruptcy Bankruptcy is a daunting word. It conjures imagery most people would likely prefer to avoid if possible. A lot of the anxiety produced by discussions of bankruptcy come from a basic misunderstanding of what the process is, why it is important and how it can be used to protect your finances. One might fairly ask how going bankrupt can protect finances. The answer is that bankruptcy is not the legal term for someone with no money.

The truth is, any economic system that relies even partially on credit must have a mechanism for restoring the practical financial viability of someone who reaches a point where their debts so far exceed their assets and income they have no means to repay their debts. Bankruptcy laws are arranged into several chapters, each of which is written to address a certain set of circumstances. One of those is called Bankruptcy Chapter 7.

debt relief attorney Individuals may file for bankruptcy for a wide variety of reasons. For some people, an injury or illness can lead to unmanageable medical bills, and the time they spend away from work only worsens these financial issues. Divorce is another major cause of bankruptcy filings because of expensive legal fees, child support and alimony payments. Unexpected job loss coupled with long periods of unemployment can also create serious financial problems when people begin using credit cards to pay for everyday living expenses. Others, meanwhile, may have steady income but are unable to manage their spending. They may build up debt from credit cards and loans to the point where making minimum payments becomes impossible.

Vehicle Repossession It's a fact of life that cars are important. They get you to work, take you to the ballgame, and serve as the vehicle to transport your kids, groceries, and many other things. When they're made correctly, cars safely take you to and from your destinations. Especially for people who live outside of major cities, cars can be critical. The bus is often inconvenient, and after a long day at work, riding the bus can be a real challenge due to time, space, or other factors. It's normal to have a tangible attachment to your car. For many of us, cars have been with us for a decade. We've made memories in them, from road trips to those special nights coming home from our children’s piano recitals. So what happens when you're in danger of vehicle repossession in Savannah, GA? It's more common than you might think. Financial instability is a common occurrence in today's economy. Here are three situations you might find yourself in and what you can do to change them.

Filing Bankruptcy Many people who are considering filing bankruptcy want to know if it will have any affect their income tax return. In the state of Georgia, as well as the rest of the United States, the laws are the same. Tax debts are generally not dischargeable. People often wonder what the case is specifically in a Chapter 13 bankruptcy. In that situation, the debts must be paid in full according to the reorganization plan. To have them liquidated in a Chapter 7 can be a bit tricky, but in some cases it can be done.

Credit ScoreMost people don't set out to have a bad credit score. In fact, most people put in significant effort to maintain the best credit score they can in order to allow them to purchase their next car, home, and other things they need. However, bad things happen to good people, and sometimes life throws some real, unavoidable curve balls. Many are able to bounce back from their bouts with bad credit, but others need to ask for court intervention to rid them of their debts. So, what are the most common reasons that a person has bad credit? Here are a few typical bad credit scenarios that any debt lawyer often comes across.