If a person is facing severe debts that they will be unable to pay, the only viable option may be to find a reprieve from this problem. While bankruptcy is a commonly used and instrumental legal tool for debtors, there are some important factors that those considering this option may overlook when evaluating whether bankruptcy is right for them. Chapter 13 Bankruptcy Can Prevent The Loss Of Assets An important thing to realize about bankruptcy is that it may not always involve large-scale liquidation of the debtor's assets.

Chapter 7 bankruptcy is also called liquidation or straight bankruptcy. An individual files Chapter 7 to relieve them from most of their debt. The process can last three to six months. The length of your case will depend on the complexity of the case. To apply for Chapter 7, you will need to file a petition in bankruptcy court depending on the area you live in. In addition to the petition, you will also be required to file other documents such as schedules of assets and liabilities, schedules of income and expenses, schedules of executory contracts and leases, and statements of financial affairs.

It isn't hard to get in over your head financially, but how you handle it is important. You may need some help to get back on track, and there are many agencies and companies that can do just that. If you find yourself considering filing bankruptcy, consider the following steps before you make that choice.  Considering Debt Consolidation Debt consolidation is a process that will take all your past due bills and combine them into one larger sum.

While incorporating a business protects the owner from being held personally liable for company debts, the opposite is also true. The corporate veil prevents creditors from seizing company assets to satisfy the personal debts of the business' owners. However, sometimes a creditor can successfully pierce the veil and hold the company liable for debts incurred by its owner. Here's two ways this can happen. The Alter Ego Doctrine One way creditors may reverse pierce the corporate veil is by proving the company is merely an alter ego of the shareholder/owner.

When you need emergency cash, payday-loan stores serve a valuable purpose. Not everyone has access to credit, savings accounts, and generous friends or relatives. Unfortunately, the financial situation that might lead to a payday loan can also lead to the need for a bankruptcy filing. When it comes time to list your creditors on your bankruptcy matrix, you may hesitate to list the payday loan. Bankruptcy should present filers with the opportunity to make a fresh financial start, so you want to include every possible debt for discharge.

When your financial situation has gotten to the point where you have not been able to pay your mortgage for a few months, you may receive a notice of default. This means the lender has decided to foreclose on your home. Try to work out some type of repayment plan with the lender. However, if you cannot come up with something you can both live with, you may want to talk to a bankruptcy attorney.

Even though a lot of areas are slowly recovering from the housing market crash in 2008, there are a lot of homeowners who are still upside down in their mortgages with no hope of recovering their lost property values. That's forcing a lot of people to make some hard choices, which may include walking away from their mortgage and property. If you're considering this option, learn more about how filing for bankruptcy can affect your situation.

It isn't uncommon for people who are having financial trouble to move around a little, usually looking for a better job or an opportunity to get their financial situation under control. If that applies to you, you may have put some things in storage while you stay with friends or relatives, hoping the financial crisis will pass. Unfortunately, that can lead to a complicated problem if you end up filing bankruptcy.

Have you recently graduated from university? During your studies, did you rack up a large amount of credit card debt? If you're wondering how you'll ever be able to pay off all the money you owe, it may be time to file for chapter 7 bankruptcy. Here are some things you should know before filing for bankruptcy: Your student loan debt will remain: In general, student loan debt cannot be elimiated if you file for chapter 7 bankruptcy.

It's quite common for those who've been struggling to pay their debts to find out that they can't afford bankruptcy when the time comes. Filing for a personal bankruptcy under Chapter 13 or Chapter 7 requires careful planning and an understanding of certain legal issues, and mistakes can affect your finances and your legal rights. Some people may be mistrustful of lawyers, but a bankruptcy attorney can help you save what little money you have left.