When debating between Chapter 7 and Chapter 13 bankruptcy, you may be deciding if you want to have your debt forgiven after liquidating assets (Chapter 7) or if you want to pay the debt off through a repayment plan (Chapter 13).
7 types of debt that last after bankruptcy
Bankruptcy can absolutely help you get rid of debt. Chapter 7 eliminates what you owe after assets are liquidated and as much debt as possible is paid back. For instance, you may owe $50,000 and have $10,000 in nonexempt assets. The other $40,000 is forgiven.
Why is Chapter 13 called a wage earner's plan?
You may have heard Chapter 13 bankruptcy referred to by its nickname: the wage earner's plan. If you ever wondered why it got this nickname, it actually tells you quite a bit about how the process works.
Do bankruptcy filing fees have you reconsidering this option?
Wanting to become financially aware may hit you for any number of reasons. In particular, you may already have found yourself facing considerable financial difficulties and now want to get back on track. You may try to budget, account for every penny spent and make sure that you do not put money toward frivolous or unnecessary expenses.
Can you eliminate student loans with bankruptcy?
You took out $100,000 in student loans. At the time, you were a teenager just trying to decide on a career path. You figured you would land a high-paying job with your college degree and then you could easily pay the loans back.
