Bankruptcy's 5 Most Pressing Questions: [FAQ] Answered
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Transcript of Bankruptcy's 5 Most Pressing Questions: [FAQ] Answered
These 5
Questions We Get
Asked The Most
BANKRUPTCY
#5
THE MOST COMMON QUESTIONS WE GET ASKED
How Does Bankruptcy Work?
THE BANKRUPTCY PROCESS
Question:
Answer: Let’s Go Over Some Bankruptcy Basics You Need To Understand
A Chapter 7 bankruptcy can help you discharge:
• Credit card debt
• Medical bills
• Car loans on repossessed vehicles
• Mortgages for houses (you don’t want to keep –*Exception homestead rules)
• Non-fraud-related law suits
• Some tax debt
THE BANKRUPTCY PROCESS
Chapter 13 bankruptcy can help you restructure and create a possible repayment plan:
• Can put a stop to a mortgage in default foreclosure
• Can help you keep nonexempt property
• Can help reduce secured debts
THE BANKRUPTCY PROCESS
Debts Bankruptcy Can’t Eliminate:
• Eliminate child support or alimony obligations
• Prevent a secured creditor from repossessing property (*Exceptions exist for homestead protected property)
• Eliminate government backed student loans
• Wipe out tax debts & other nondischargeabledebts (traffic tickets, debts from personal injury caused by intoxicated driving, etc.)
THE BANKRUPTCY PROCESS
#4
THE MOST COMMON QUESTIONS WE GET ASKED
What Type Of Bankruptcy Should I File For?
WHICH BANKRUPTCY OPTION IS BEST
Question:
Answer:
It depends on your unique situation. Generally, look at your income and assets.
Determine if any assets are worth protecting and whether meeting the obligations of a restructured repayment plan is worth it for you to keep.
Run the numbers whether a clean slate would be better off for you than a managed restructuring.
WHICH BANKRUPTCY OPTION IS BEST
Possible scenarios
Scenario Description Type of Bankruptcy
Unemployed (few assets) - No income- Large debts- Not a home owner- Has a car with a loan
against it
Chapter 7
Unemployed homeowner with significant equity
- No income- Homeowner- Lots of Equity Value- Unsecured debts
Chapter 13 (can keep ahome if keeps current on a mortgage) – need to be able to fund a repayment plan
WHICH BANKRUPTCY OPTION IS BEST
Possible scenarios
Scenario Description Type of Bankruptcy
Unemployed homeowner with upside-downmortgage
- No income- Homeowner- Property owned is
underwater (negative equity) – a.k.a. loan is upside down
- Unsecured debts
Chapter 7 – (Consider walking away free andclear to start fresh) *
Employed homeowner facing foreclosure
- Some income- Homeowner is behind
on mortgage payments– near complete default
- Unsecured debts
Chapter 13
WHICH BANKRUPTCY OPTION IS BEST
#3
THE MOST COMMON QUESTIONS WE GET ASKED
How To File For Bankruptcy?
HOW TO DECLARE BANKRUPTCY
Question:
Answer: You CAN file your own bankruptcy in your State. Here is how to do it: BUT DON’T do it yourself. It’s more than just paperwork.
• Find out if you qualify (and under what chapter)
(The U.S. Court offers means test forms you can use to analyze your situation according to their recommendations you can view here)
HOW TO DECLARE BANKRUPTCY
• Fill out the bankruptcy forms. You will need to list your debts, list all property and assets, income, etc.
(All the forms you need are available at the U.S. Court’s website here)
• The you need to file all the documents.
(We strongly recommend you hire a bankruptcy attorney for the process. They will know the people deciding your fate, and it can make all the difference.)
HOW TO DECLARE BANKRUPTCY
The Bankruptcy Process:
• A bankruptcy trustee will review your protection claim, listed assets, debts and income
• You will be required to credit counseling as a condition of your debt relief
HOW TO DECLARE BANKRUPTCY
#2
THE MOST COMMON QUESTIONS WE GET ASKED
Can I File Bankruptcy Without A
Lawyer?
DO I NEED AN ATTORNEY TO GO BANKRUPT
Question:
Answer:
It’s NOT “just filling out forms.”
A bank trustee will review your case and will ask you questions. They have obligations under the bankruptcy laws they must follow, however, they can make your bankruptcy hearing a grueling nightmare.
Your lawyer will help ensure your paperwork is in order, and works with these people everyday.
It can make for a much smoother experience.
DO I NEED AN ATTORNEY TO GO BANKRUPT
#1
THE MOST COMMON QUESTIONS WE GET ASKED
What Should I Do To Recover From Bankruptcy Faster &
Rebuild My Credit Score?
RECOVERING AFTER BANKRUPTCY
Question:
Answer: Build the strongest financial foundation you can for your family, and your credit score will take care of itself naturally.
• Focus first on improving your income (finding a, making more money, etc.)
• Create a personal budget you can stick to
• Make on-time bill payments
• Keep borrowing to a minimum, low interest secured financing preferred (auto loans, mortgages etc.)
RECOVERING AFTER BANKRUPTCY
About ReallyBadCreditOffers.com
ReallyBadCreditOffers.com provides everything you need to make mincemeat of debt and attack even the toughest financial problems with innovative, eye-opening tools, strategies, and advice.
We provide ‘tough love’ straight-talk about financing, credit and savings issues. Founded with a mission to give consumers the real world, actionable resources to rapidly whip their personal finances into shape.
Visit the website to learn more about the powerful resources available to help people struggling financially get back on track.
To Learn More: https://www.reallybadcreditoffers.com
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Source: https://www.reallybadcreditoffers.com/declaring-bankruptcy.php
PERSONAL FINANCE SUCCESS SECRETS