Filling bankruptcy for a new start

Sometime we fail to calculate properly about our purchases and end up with an over credit limits and even getting loan amounts. After a certain period of time, we are unable to repay our bills and loans because of overburdened created due to our financial situation. To overcome from this financial situation one can go for filling bankruptcy. In fact, when we are unable to clear loans or credit bills filling bankruptcy is a help to us.

When our loans are defaulted or credit limits are over, we often get harassed by the collection calls from the concerned agencies to repay their money. But filling bankruptcy is the best way to get rid of these calls and indicating our inability to deal with the financial situation. Bankruptcy eliminates all your medical bills and credit bills it means no need to repay to the creditors. Creditors will not bother you for the credits and you are free from all outstanding dues. Even this is the only way to secure your mortgage items as well. The most important is that, you will not receive stressful calls from creditors to pay for bills or loans. 

After filing for bankruptcy, one will get peace of mind and time to think alternative ways to deal with the situation. This was not possible from a long time because of, stress of repaying debts. You will get immediate relief from financial problems and able to think about to start a new and fresh life. 

What are the criteria for filing bankruptcy

When filing for bankruptcy, it is important to know the criteria for filing bankruptcy.  Bankruptcy can offer you numerous benefits, but also with some costs. We will outline those for you here.

Bankruptcy can eliminate your legal obligation to pay most if not all of your debts. It is important to meet the criteria for filing bankruptcy. Filers for bankruptcy frequently must take a test based on their income in order to qualify for bankruptcy. For individuals, one of the requirements is to go through credit counseling within 180 days of filing for bankruptcy. For married couples where only one member files for bankruptcy, one of the criteria for filing bankruptcy is that only joint property can be liquidated in order to settle the debts. Individuals must also file a voluntary position in order to fit the criteria for filing bankruptcy.

It is important to keep in mind what bankruptcy can not do. It can not eliminate certain rights of “secured” creditors. A secured creditor is some entity that has taken a mortgage as collateral for the loan. The most common “secured” creditors are home mortgages and car loans. The general rule is that you cannot keep the home or car unless payments are maintained throughout and after bankruptcy. Bankruptcy also cannot discharge debts such as alimony, child support, some student loans, some taxes, and various other debts. Finally, bankruptcy cannot protect the cosigners on your debts. The cosigner may still have to pay all or part of the loan.