13 bankruptcy chapter loan
Congress has decided that the honest debtor who is in debt beyond his or her ability should be able to repay debts (or be released from paying all debts) and should be given a fresh start through the discharge of debts in a bankruptcy proceeding. However, not all debts are dischargeable. For instance, most taxes cannot be wiped out; nor can spousal or child support, student loans or criminal fines and penalties. There are certain other debts which also cannot be wiped out that you can discuss with an attorney before you file.
Is your home being foreclosed or is your car about to be repossessed
If it is, very often bankruptcy may prevent the foreclosure action or repossession from proceeding and allow you to consolidate your mortgage arrears or automobile balance and make payments on those debts over time through a payment plan. If your house is being foreclosed or your car is about to be repossessed, Chapter 7 may not be an option. Chapter 13 may save your house and your car.
Do credit cards or medical bills have you so deep in debt that it is hard for you to save for the future
If you are only paying the minimum payment on the credit card bills from month to month (generally from two to three percent of the outstanding balance), and the interest rate is only 15%, you will take about 20 years to pay off a $10,000 debt. Do you really want to be in the same financial situation in twenty years Bankruptcy may be able to provide you with a fresh start and get you out of debt.
Will I be able to keep my credit cards or obtain credit after bankruptcy
After listing all credit cards on the Bankruptcy Petition, in most cases, you can ultimately reaffirm one or two if you agree to repay the amount that was owed to that particular creditor. Whether you want to do that or not is sometimes questionable, however, since those are the debts that you were trying to get rid of to begin with. However, there are several ways to get credit after bankruptcy. One way is to reaffirm a debt, as previously discussed.Also, some banks are now offering a secured credit card, meaning that your credit limit would be based upon the amount of money that they are holding in their bank, to potentially offset your debt against the money that they are holding.
As to your future credit, many creditors are more likely to extend you credit after you file for bankruptcy than before your filed because with all of your dischargeable debts wiped away, you would now have more disposable income to pay the new debts. In addition, creditors know that the debtor cannot file for bankruptcy for another six years, thereby prohibiting you from being able to wipe them out as a creditor during that period of time
How does Bankruptcy affect my credit history and will it wipe out all of the debts on my credit report
This is a very common question. My response is usually that your credit history looks pretty lousy now; therefore how much worse can it get with a bankruptcy.As previously indicated, while the bankruptcy will appear on the credit report for ten years, once filed, and once you begin to re-establish your creditworthiness, it will not make much difference. As to wiping out all debts on the credit report, one should think of a credit report like a history book. You cannot change history, but you can add to it. Likewise, you can only add to your credit report. Hopefully, the bankruptcy discharge will be the end of the "bad history" and the beginning of the "good history".
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