Debt & Bankruptcy
Got a ton of debt? Got collectors calling? Considering bankruptcy? Get advice on how to manage debt, stop collectors and legally determine whether bankruptcy is the right option for you and your family. Get answers to your personal finance questions by asking a live expert. What happens if you default on your car payment? Can a collection agency threaten to garnish your wages or levy your personal back account to collect a debt? Are their laws to protect you from overly aggressive collectors? Learn the difference between Chapter 13 bankruptcy and Chapter 11. For more information and advice on these issues and others, contact one of the experts below.
Accumulating debt has become a way of life in America. According to a recent study, 79% of baby boomers have excessive mortgage debt and 61% have excessive levels of credit-card debt. With large and unmanageable debt comes the need to consider filing for bankruptcy. When filing for joint or individual bankruptcy, you surrender your "non-exempt" property in exchange for forgiveness of your debts. Your property is sold and the proceeds are divided among your creditors, and you no longer owe those debts.
Filing for bankruptcy is a debtor's most extreme remedy. It is available only once every six years, so once you use it, you are barred from using it again for quite a while, no matter how badly you need it. So don't use it until you understand what you will get out of it and what alternatives you might use instead. Some people file for bankruptcy when there is little need to do so. Perhaps the debt could have been resolved by negotiating with creditors directly or by getting help from a credit counseling service to negotiate with your creditors on your behalf. Either way you should know that bankruptcy courts are on the lookout for what they perceive as an abuse of the bankruptcy system. If a debtor has sufficient income to make substantial repayment of debt, the court might dismiss the bankruptcy filing as a violation of the debtor's duty of good faith.
Consumer debt can generally be divided into two categories: secured and unsecured. A debt obligation is considered secured if creditors have recourse to the assets that was pledged as collateral. Unsecured debt comprises financial obligations, where creditors do not have recourse to the pledged asset of the borrower to satisfy their claims. A basic loan is the simplest form of debt. It consists of an agreement to lend a principal sum for a fixed period of time, to be repaid by a certain date. Interest is usually calculated as a percentage of the principal sum per year. In some loans, the amount actually loaned to the debtor is less than the principal sum to be repaid.
Almost everyone, one time or another will run into financial or legal trouble. Sometimes that trouble can be caused by a lost job, illness, divorce, accident or a hundred other miserable troubles people are forced to endure in times of financial trouble.
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Filing for bankruptcy is a debtor's most extreme remedy. It is available only once every six years, so once you use it, you are barred from using it again for quite a while, no matter how badly you need it. So don't use it until you understand what you will get out of it and what alternatives you might use instead. Some people file for bankruptcy when there is little need to do so. Perhaps the debt could have been resolved by negotiating with creditors directly or by getting help from a credit counseling service to negotiate with your creditors on your behalf. Either way you should know that bankruptcy courts are on the lookout for what they perceive as an abuse of the bankruptcy system. If a debtor has sufficient income to make substantial repayment of debt, the court might dismiss the bankruptcy filing as a violation of the debtor's duty of good faith.
Consumer debt can generally be divided into two categories: secured and unsecured. A debt obligation is considered secured if creditors have recourse to the assets that was pledged as collateral. Unsecured debt comprises financial obligations, where creditors do not have recourse to the pledged asset of the borrower to satisfy their claims. A basic loan is the simplest form of debt. It consists of an agreement to lend a principal sum for a fixed period of time, to be repaid by a certain date. Interest is usually calculated as a percentage of the principal sum per year. In some loans, the amount actually loaned to the debtor is less than the principal sum to be repaid.
Almost everyone, one time or another will run into financial or legal trouble. Sometimes that trouble can be caused by a lost job, illness, divorce, accident or a hundred other miserable troubles people are forced to endure in times of financial trouble.
Got more questions? Get more answers on Debt, Collection and Bankrutpcy Click here.
Learn and Grow With Our Community
Join the discussion and get new insights and tips on solving life’s troubles with our community. Make a difference; share what you know and join today.