When overwhelming debts begin to influence the decisions that Parker residents make about their finances and futures, it may be time for them to take big steps to remedy their economic woes. There are a number of ways that individuals may seek to improve their financial standing on their own, but when their problems are too big to manage on their own they may need to look into legal options like personal bankruptcy. There are two forms of personal bankruptcy that individuals often use to improve their debt situations: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
While some people may believe that bankruptcy is a single process for anyone who wants to pursue it, in reality there are many different bankruptcy options available under the law. Depending upon whether it is a Colorado resident or business that wants to file, as well as their ability to meet the qualifications of their desired bankruptcy path, a person may end up engaging with bankruptcy in a very different way from someone else. This post will discuss two of the most common forms of personal bankruptcy and what makes them different.
Facing financial obstacles can be scary for anyone, but when a Colorado resident is threatened with an economic crisis that could impact their loved ones, they may be ready to do whatever they can to shield their dependents from harm. This is especially true when that person is subject to foreclosure proceedings that could put their home at risk of being lost. For readers who are not familiar with the topic, foreclosure happens when a lender repossesses a property after the default of a buyer who cannot make their payments.
Not everyone knows that there are different options for individuals who wish to file for bankruptcy. "Bankruptcy" is actually a set of different legal paths that may allow individuals to relieve themselves of their debts and help them start their financial lives with fewer obligations. Before a Colorado resident throws themselves into the bankruptcy courts, they should be sure they understand the different requirements that they will face for their different bankruptcy options.
When Colorado residents are struggling under unsurmountable debt, they may feel lost and hopeless. However, they do have options, and one of these options may be filing for Chapter 7 or Chapter 13 bankruptcy. A bankruptcy filing can discharge many unsecured debts, such as credit card debt. However, not all unsecured debts can be satisfied through the bankruptcy process.
As many of our readers in Colorado may know, many people in our nation are struggling under an insurmountable amount of student loan debt. Many factors, including the economy, job markets and skyrocketing tuition prices, have led many people to take out student loans that they are ultimately unable to pay back. Unlike other types of loans, generally, student loan debt cannot be discharged through Chapter 7 or Chapter 13 bankruptcy. However, there are always exceptions to the rules, and in very limited circumstances a person may be able to discharge their student loan debt through bankruptcy.
The world of bankruptcy law can be confusing, especially if you are already under a great deal of stress due to your precarious financial situation. In the end, most people in Colorado who decide to file for bankruptcy will choose between Chapter 7 and Chapter 13 bankruptcy. However, there are some differences between Chapter 7 and Chapter 13 bankruptcy that are worth noting, so you can make an educated decision about which option, if any, is right for you.
While a college degree is a valuable asset, obtaining that degree is not usually cheap. Many college students need to take out loans to finance their education. Unfortunately, the costs of a college education have risen significantly in recent years and obtaining a high-paying job upon graduation is not always possible. Therefore, our nation is facing a student debt crisis in which many debtors in Colorado and across the United States are unable to pay back their student loans.
When a debtor is contemplating bankruptcy, they will either file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, with some exceptions, the debtor's assets are liquidated, and the proceeds are used to pay of their debts. The process usually can be finished within a matter of months. In a Chapter 13 bankruptcy, the debtor may retain more assets, but will have to follow a court-ordered repayment plan that could last three to five years.
A primary goal of many bankruptcy filers is repairing their credit rating. It may initially seem impossible, and a common misconception is that bankruptcy will have an irreparable, negative and long-lasting impact on one's credit score. Thankfully, this isn't the case: with care, time and patience, it is definitely possible to have a good credit rating once again.