Filing for Chapter 13 bankruptcy means that you are going to have to make regular payments to a bankruptcy trustee who will divide those between your creditors. The payments will last three to five years. For the duration of the case, you will have to live off only the remaining income you have because you can't take on new credit while you are in the midst of a bankruptcy.
When you hear the word "bankruptcy," you might think of someone who has spent their money without thinking. Some people assume that they got to the point where they are because of their own mistakes.
Bankruptcy is often seen as a problem, but if you're struggling with money, the reality is that bankruptcy is actually a solution. It is one way that you can resolve your financial woes and get back to a stable place.
Bankruptcy can be a solution for some who struggle with overwhelming debt. In Maryland, you can file for bankruptcy within a bankruptcy court in the judicial districts. You may not file a bankruptcy petition in state court.
Bankruptcy is something that many people look at with disdain, but the reality is that it can be beneficial to those with no other options. Before you look into bankruptcy, though, you should consider other options. Consolidating your debts, negotiating with your creditors and even getting a second job could help you get back on track without having to go into bankruptcy.
USA Today explains that even Americans who have good credit aren't necessarily doing well with debt. An average household, as of 2017, had $5,700 in outstanding credit- card debt.
There are a few kinds of bankruptcy that you can consider, Chapter 7 and Chapter 13. Each one has its own benefits and downsides, so it's important to learn what you can about them before you decide which to pursue.
According to statistics, around 19 percent of people who file for bankruptcy are college students. It's a normal way of life in America to take out student loans, but those loans cost what a student would pay for college many times over by the time they're paid in full. It's no surprise that around one out of five people who file for bankruptcy are living the college life where incomes are scarce and costs are high.
In many cases, student loans drag down the very people they were meant to help. Combined with the rising cost of school and lower-than expected wages, individuals are hit with the realization that their loans are higher, and more difficult to pay, than they expected.
If you are in debt and want to avoid bankruptcy, you may be considering working with your budget to start paying down your debts as quickly as you can. How you decide to do this can affect the outcome significantly.