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When filing for bankruptcy, you can discharge certain types of personalloans, meaning that you’re no longer legally responsible for paying off the debt. If you’re considering filing for bankruptcy, you need to know what personalloans you can discharge and which filing method best suits your financial situation.
Know How to Stop Creditor Harassment & Wage GarnishmentDebt can be a heavy burden. Creditor harassment is any aggressive or threatening communication from a debt collector. Wage garnishment is a legal procedure where a creditor obtains a court order to withhold part of your earnings from your paycheck to repay a debt.
Whether or not you file for bankruptcy also depends on the kind of debt you have. Bankruptcy will wipe out creditcarddebt, medical bills, and personalloans, but will not eliminate primary obligation debt; things like student loans, child and spousal support, and newer tax debt.
Filing Chapter 7 bankruptcy provides you with an automatic stay that prohibits creditors from being able to take any action to collect a debt against you, such as repossessions, wage garnishment, and legal action. Additionally, your creditors will not be allowed to contact you.
Without having to repay it later, you may immediately begin rebuilding your credit. . If you have a large amount of creditcarddebt or high medical costs that you can’t pay, Chapter 7 may allow you to start again. Chapter 7 is a disaster when it comes to secured debt. . medical debt .
If you have a co-signer associated with your debt or if you are a co-signer, you need to be aware of how financial liability works and what happens when the primary debtor declares bankruptcy. Fortunately, in this blog, we’ll unpack cosigner responsibilities when it comes to bankruptcy and debt.
When your debt is charged off as a bad debt, don’t fool yourself into thinking it goes away. A charged off debt can lead to harassing phone calls, garnished wages, and a major drop in your credit score. According to the Federal Reserve, consumer loans had a charge-off rate of around 2.3%
Chapter 13 creates a 3-5 year payment plan that lets you keep assets, but you need steady income and must owe less than $465,275 in unsecured debt. Creditcards, medical bills, and personalloans make up most unsecured debt that bankruptcy can eliminate. Late utility bills also count as unsecured debt.
With a deep commitment to personalized service, we take the time to understand your unique circumstances and tailor our approach to your specific needs. This powerful solution can immediately halt creditor harassment, wage garnishments, and lawsuits, allowing you to breathe a sigh of relief and regain control of your financial life.
It distinguishes between what are called ‘secured’ and ‘unsecured’ debts, which are terms you need to know before filing for bankruptcy. And possibly the most common question people ask is creditcarddebt is secured or unsecured. Secured vs Unsecured Debt: What’s the Difference? What is the difference?
Chapter 7 bankruptcy, also known as liquidation or straight bankruptcy, can help those having financial difficulties clear away various types of debts. When you file for Chapter 7 bankruptcy, the Court will place an automatic stay upon filing, which stops creditors from collecting payments, garnishing wages, or repossessing property.
. • Whatever the reason, ignoring a debt collection lawsuit can mean big trouble. It can garnish wages and bank accounts, • It can force the sheriff to seize your home, real estate, and personal property. The worst thing you can do when facing a debt collection lawsuit is to ignore it. We can alleviate your stress!
Bankruptcy does have some benefits, such as potentially putting a stop to wage garnishments or foreclosures. Usually during a Chapter 13 you only pay off part of your debts. Priority and secured debts, such as taxes or auto loans, are paid in full. That can take three to five years.
Rising Consumer Debt Levels: Consumer debt levels have been on the rise globally, driven by factors such as increased access to credit, changing consumer behaviors, and economic factors. This trend presents significant growth opportunities for debt collection agencies.
The money earned from these sales then goes to the creditors and any remaining balances on the debts are discharged. In some cases, debt collectors may take legal action by filing a lawsuit against you to obtain a court judgment.
Declaring Bankruptcy Before a Divorce If you’re on good terms with your spouse and are struggling with unsecured debts, you may want to consider filing Chapter 7 bankruptcy before your divorce.
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