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Personal Bankruptcy Archives

Bankruptcy filing leaves room for resurrection of good credit

Government records indicate that over a million people and businesses filed bankruptcies in 2013. A consumer filing in Arkansas and elsewhere entails an individual or a married couple entering a petition for relief with a federal bankruptcy court. They get rid of or reorganize primarily consumer debts in either a Chapter 7 or Chapter 13 filing. The interesting but perhaps little known aspect of a bankruptcy is that the filers can rebuild their credit standing fairly quickly after the bankruptcy is finalized.

How filing for bankruptcy will affect one's credit

When considering filing for personal bankruptcy, many Arkansas residents are concerned about how the move will impact their credit standing. This is understandable, as having a solid credit score is the key to attaining future lines of credit, favorable interest rates and the ability to purchase a new home or vehicle. However, the manner in which many consumers think about bankruptcy and credit may be flawed.

Bankruptcy provides powerful remedies for debt relief

In Arkansas and in all other jurisdictions, the federal bankruptcy remedy is a proven way to wipe out large accumulations of consumer debt. However, an individual or married couple who are thinking about filing a bankruptcy should always first obtain a consultation with a seasoned bankruptcy attorney. Professionals who practice in this area are well-equipped to tell you whether you qualify for debt relief, and then whether such a move is advisable under your particular circumstances.

Divorce may prompt bankruptcy filing to erase debt

Sometimes, people with seemingly higher incomes and large assets file a personal bankruptcy. This may be due to a temporary financial crisis or a long-term buildup of debt that the individual eventually could not handle. Bankruptcy can be a useful remedy for lawyers, doctors, and others who need to wipe out certain dischargeable financial burdens in order to move on with their lives. These considerations apply in Arkansas as well throughout the country.

Pros and cons: bankruptcy versus debt consolidation plan

When a person's unmanageable debt load reaches a critical point, constant harassment, lawsuits, judgments and even executions are the natural order of things. Arkansas citizens suffering in that circular nightmare, or who may be getting close to it, may find themselves trying to choose between a debt consolidation remedy and filing a bankruptcy. Those are really the only two options that may stop the creditors' onslaught, other than winning the lottery big-time and paying everything off.

Proving undue hardship may discharge student loan in bankruptcy

The $1.2 trillion that is owed in the country for student loan debt constitutes the highest amount of consumer debt except for mortgage debt. In prior days, a student loan could be discharged in a bankruptcy as an unsecured debt. However, Congress has passed several laws making it tougher and tougher to do so. The problem is now critical for the economy and in the lives of many persons in their fifties and sixties, including here in Arkansas. 

Two basic bankruptcy options are open to consumers

As layoffs continue in different industries nationwide, including in Arkansas, the need for assistance and practical resolutions for consumer debtors continues. There are two consumer bankruptcy solutions available to those who were laid off or otherwise suffered a drop in income or an increase in unanticipated expenses. They are the Chapter 7 bankruptcy and the Chapter 13 bankruptcy.

Powerful bankruptcy remedies justify more positive outlook

A recent article in Forbes attempts to assess certain emotional challenges that a small business owner may experience during bankruptcy proceedings. The same principles apply as easily to Arkansas consumers filing to discharge non-business consumer debt. Some tips and common sense principles should serve a person or married couple well in approaching the challenge of successfully completing a bankruptcy filing and obtaining a final discharge of debts.

In Chapter 13 bankruptcy, debtors file a Plan to keep their home

The Chapter 7, or straight bankruptcy, is used by consumers in Arkansas to eliminate credit cards, medical bills, and other unsecured debts. As previously discussed, it’s possible for an individual filer, or husband-and-wife joint filers, to retain their residence in a Chapter 7. In some circumstances, the debtor can keep paying on a current house loan and reaffirm the loan, while discharging unsecured debt. The mortgage and the debtor’s ownership of the home, will pass through the Chapter 7 basically untouched. However, if the home loan is in arrears or default, or even if a foreclosure sale was pending at the time of filing, the debtors can file a Chapter 13 bankruptcy to try and bring the loan current and keep the house.

Chapter 7 debt relief quickly wipes out unsecured debts

For those in Arkansas who may be contemplating the possibility of bankruptcy as a way to quickly eliminate large amounts of unsecured debt, it’s wise to get an understanding of how the procedure works. Those who go forward well-informed will be more relaxed and positive by knowing the meaning and impact of the various steps. Generally speaking, a personal bankruptcy for those with large amounts of unsecured consumer debt, such as credit cards, unsecured personal loans, and medical bills, is the strongest, quickest and most effective debt relief remedy available.