People who are past due on their bills often don't like to answer the phone or check the mail because of collection attempts by debt collectors. While it is understandable that they will try to collect what's due to them, there are limitations to what they are allowed to do. The Fair Debt Collection Practices Act (FDCPA) sets certain standards and limitations for this.
When you are struggling to pay your bills, there is a good chance that some will fall by the wayside. This can initiate collection calls that become bothersome after a bit. Sometimes, creditors will outright harass people, but this isn't acceptable. You probably just want the constant contact to stop. One option that you have to take care of the past due bills and the creditor calls is to file for bankruptcy.
Feeling like you are drowning in debt is one that you might not be able to overcome. For most consumers, there are two options for filing bankruptcy. These are Chapter 7 and Chapter 13, and each has its own guidelines.
Being in debt can become a hopeless feeling when it gets to the point where the minimum payments are taking up most of your income. Just making ends meet can be a huge challenge. In some cases, it is impossible. If you are at the point where you think that all is lost, it is time to sit down and try to make a plan for your financial future.
One of the main reasons people in this country file for bankruptcy is medical debt. Unfortunately, this isn't something that is easily avoided unless you never seek medical care for anything. It surprises some people to know that even patients with good insurance might end up in financial trouble because of medical bills. When you have mounting medical bills that you can't pay by the due date, you will have to come up with a plan for taking care of them.
One of the benefits that people who file for bankruptcy look forward to is the automatic stay. There is almost nothing as stressful as a creditor coming to you to find out when you are going to pay a bill. They might get pushy and start demanding that you send in money -- even though you can't give them something that you don't have!
Most adults make good financial decisions, but there are times when life's circumstances don't allow you to do this. Things like the unexpected loss of a job or medical crisis can lead to some challenging financial decisions. While you can't control those situations, you will have to be the one to cope with the resulting bills. We are here to work with you to determine which chapter of bankruptcy might be the answer to your money troubles.
Bankruptcy is something that shouldn't be taken lightly, but it isn't something that you should ignore if you need to seek financial relief. There are many reasons why you might need to file for this protection. One is that you can rest easier when you check the mail or answer the phone because the court issues an automatic stay when you file your bankruptcy petition.
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.