There are many good resources online for just about any topic you may be interested in. Along those lines, many people search for bankruptcy information online. This can be a good resource for people to get general information on the topic, but there’s not a single “correct” option for a family. A bankruptcy attorney can learn your specific situation to help you determine if filing Chapter 7 or Chapter 13 is in your best interest.
One option people have when filing bankruptcy is to use a bankruptcy petition preparer. These are non-attorneys who fill out the bankruptcy forms for a filer. They are cheaper than lawyers, so some people try to save money by using them. While this is certainly a filer’s right, it may not be the best option. Before using a petition preparer, take advantage of the free consultation many bankruptcy lawyers offer.
As a general rule, you are not responsible for the debts of your spouse. Also, if you marry someone you do not become obligated to pay the debts they incurred prior to the marriage.
One issue that many clients have questions about is reaffirmation agreements. Reaffirmation agreements–if approved by the court–mean that the debtor remains personally liable for the debt. As to that debt, it’s just like the debtor never filed Chapter 7. So if the debtor later (a year or two after bankruptcy, let’s say) can’t pay his mortgage, he’d be responsible for the deficiency.
Many older Americans look into reverse mortgages to cash out some (or all) of the equity in their home. This can provide necessary funds for things like health care and other expenses while allowing the person to remain in their home. But there are times when this money may not cover expenses and a bankruptcy attorney is needed. An experienced lawyer can examine your situation and determine if bankruptcy can help with your issues.
Certain types of debt are not dischargeable in bankruptcy (or are only dischargeable if certain requirements are met). These are called priority debts. Your bankruptcy attorney can discuss your situation to determine the types of debt you. If your debt is not dischargeable in bankruptcy, they will explain your options to find the best solution.
Some people, in the anticipation of the death of a loved one, seek to file bankruptcy to get their debt under control. They know that there is something in the estate for them and the worry that their debt will consumer most of this inheritance. There are rules, however, about inheriting money so quickly after filing bankruptcy. A Philadelphia Chapter 7 Lawyer can explain how filing may impact your ability to keep this inheritance.
Filing for bankruptcy protection can be a tremendous relief for many people. Bankruptcy protection can stop the harassing phone calls and give you peace of mind. It also gives you hope of moving forward with a clean slate and a way to put a crushing debt burden behind you. Though this works well for many people, there are plenty of others who may not benefit from bankruptcy protection or may not be able to take advantage of bankruptcy protection given time restrictions.
After a divorce there are usually two households, but the same amount of money to run them. A troubling situation is one in which there is less money, but the same amount of bills. Despite what you and your former spouse agreed upon in the divorce, you can be held responsible by your credit card companies for all debts in your name. Unless you are removed from the loan, you will also be responsible for the payments on any vehicles purchased through a loan under your name. A Chapter 7 bankruptcy can eliminate that debt and free up money necessary for utilities and rent.