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What You'll Gain and What You'll Lose in Bankruptcy

What You'll Gain and What You'll Lose in Bankruptcy
"If you have absolutely no means to pay your bills - no job, no savings, etc. - you may need to seriously consider bankruptcy as a way out of your current situation. If you have an income but won't be able to pay off your unsecured obligations within three years while maintaining a reasonable standard of living, you may also want to consider this option.

Now don't misunderstand. If your objective is to pay off a few debts so you can save money, you should not file for bankruptcy. Hardly. The purpose of the U.S. Bankruptcy Code is to help honest debtors, not those who want to charge up to their hearts' content and then file for bankruptcy. If you intend to manipulate your creditors, wiggle out of debts you can easily pay, evade child support, or otherwise place someone on the hook, bankruptcy will not help you. It's neither a stopgap nor something to be used for retribution. If you file for bankruptcy under dubious circumstances, the judge presiding over your case may simply dismiss it. If he or she discovers that you lied on your tax return, you could face prison time.

Bankruptcy can be a blessing for those who are unable to manage their legitimate financial problems any longer. However, it does have some disadvantages.

On the positive side:

You have the ability to terminate virtually any lawsuit.

You can halt or avoid wage garnishment.

3. You can halt most evictions if you file for bankruptcy before a state court enters a judgment against you.

4. You'll be able to avert repossessions

5. You will have the ability to halt foreclosures

You will be able to prevent the suspension of your driver's license for delinquent fines or judgments.

However, you will still lose your license if you fail to pay court-ordered child support.

7. You will be able to thwart IRS seizures

Negatively, bankruptcy will not prevent:

1. Criminal prosecutions

2. Proceedings against a cosigner of your loan, unless you file Chapter 13 and intend to repay the loan in full.

Proceedings regarding contempt of court

4. Any actions to collect child support or alimony arrears, unless you file Chapter 13 and propose a plan to pay these debts in full.

5. any administrative regulatory proceeding""

" - https://www.affordablecebu.com/

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"What You'll Gain and What You'll Lose in Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 123 times and generated 0 comments. The article was created on and updated on 03 June 2023.
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