Many people dread the thought of filing for personal bankruptcy and put it off for as long as possible. However, this procrastination often makes a bad situation even worse. If you're considering bankruptcy as an option for getting out from under an avalanche of debt, it's best to start learning about the process sooner rather than later. It's not a quick and easy process. However, with good professional legal help, you can make the best choices for your situation.
Those facing overwhelming debt often search for a solution for some time before bankruptcy becomes an option. Once these individuals begin to consider Chapter 7 or 13 as a possible solution, they must then contemplate a number of questions before making a decision. Examples include:
If you're considering filing for bankruptcy, then you may have heard the terminology "wage earner's plan" thrown about. This phrase is just another name for a Chapter 13 bankruptcy. It's a simple way of describing what's involved in filing for this type of debt relief.
If the Internal Revenue Service has reached out to you about a potential tax problem, you may feel concerned and on edge about the whole thing. It is completely normal to feel that way. Many people believe that when dealing with the IRS they do not have any rights or protections. That simply is not the case.
Bankruptcy does not always happen the way you assume. There are many reasons people get into financial trouble, some of which they have no control over themselves. It is important to understand these reasons as you consider all of your options.
Making the decision to file a Chapter 7 or a Chapter 13 bankruptcy is difficult. One of the most powerful elements of bankruptcy that helps people make this decision is the promise of an automatic stay. This means an almost-immediate cessation in collection attempts made by your creditors. Most people find that once creditors stop their collection attempts, they feel better about moving forward with bankruptcy.