You have over $20,000 in credit card debt. You are thinking of using Chapter 7 bankruptcy to get a fresh start. What you want to know is whether or not the credit card companies can still come after you for payment once your bankruptcy filing is completely.
People who file for bankruptcy often feel alone. They do not want to talk to other people about it. They feel like no one else is dealing with the same financial issues. It seems like everyone else has a great, stable life, and they are the only ones with these debt problems.
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.
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.
Bankruptcy can be stressful. Some experts even claim that the mental and emotional stress can be worse for those going through the process than the financial strain that they face.
You filed for Chapter 13 bankruptcy because you're still earning money, working as an independent contractor, and so you wanted to pay off your debt over three to five years instead of liquidating your assets. You like the idea of keeping what you own.
Unfortunately, despite the fact that it is simply a legal financial option, bankruptcy often carries a negative cultural stigma. This is a curious development, as bankruptcy does not hurt the peers of a person filing in any sense, but the stigma remains.
Debt is something that almost every American will have to deal with at one time or another in life. Whether it's student loan debt, a mortgage, credit card debt, a car loan, a boat loan or any other type of loan; debt is almost unavoidable. It's necessary for people to go into some form of debt in an effort to live their lives. But, debt can begin to build quite quickly to the point where you are swimming in it and see no way out of it.
Chapter 7 is the most widely available form of bankruptcy, offering those who face debt they cannot get under control the opportunity to unload some of it in return for surrendering some types of property and submitting to a few restrictions on borrowing for several years. While this form of bankruptcy is often the most difficult to undergo because of property forfeiture, it is also available with fewer requirements than other bankruptcy options.
It's not hard for people to find themselves in a heap of debt these days. Not much has really changed from the past as credit cards have been around for decades. If anything, debt has been easier to accrue ever since the dawn of online shopping. Here are some of the common financial challenges people are faced with in the world today.