Financial troubles can arise from many sources. Medical debt, student loans and unexpected major expenditures can all swell strained budgets to the breaking point.
Many debtors file bankruptcy to take full advantage of the automatic stay it places on collection activity from creditors during the pendency of the bankruptcy proceedings.
Some debtors attempt to file for a Chapter 13 bankruptcy debt reorganization only to learn that their resources and estates exceed the debt limits set forth in the United States Bankruptcy Code.
Bankruptcy fraud allegations are very serious. Not only can false or misleading statements cause your debts not to be discharged, but you could wind up doing a stint in federal prison if you are convicted on the charge.
Sure, they can be quite annoying, but debt collectors aren't nearly as powerful as they may threaten they are to debtors. These third-party debt collectors do have the right to take you to court to pay your debts, but if you have little money or few assets, they may not even bother.
Individuals who are contemplating filing for bankruptcy to get out of debt may wonder whether they should avail themselves of the financial relief provided under Chapter 11 or Chapter 13. In most instances of consumer bankruptcy, Chapter 13 will be the more appropriate choice -- but not always.
Debt takes a heavy toll on those who owe and sometimes forces them to seek relief via bankruptcy. But there is a little-known tool that creditors can use to get their money -- involuntary bankruptcy.
Chapter 11 bankruptcy is a type of bankruptcy that is most often associated with companies. This is because the filing makes it easier to deal with a situation in which there are high debts and high incomes involved.
Struggling with debt can be extremely stressful, and sometimes it can be difficult to know which way to turn. While there is a certain social stigma attached to the act of filing for bankruptcy, it is actually perhaps the best thing that you can do for your finances when you feel that your debts are spiraling out of control.
When an individual is struggling with accumulating debts, it is likely that he or she has considered filing for bankruptcy as a solution to this situation. However, it's easy to become overwhelmed with the different choices in regard to all of the bankruptcy chapters.