Does it Make Sense to Give Up Your House in Bankruptcy?

If you're struggling with a mortgage that is too much to bear, or if you're already delinquent, then you may be considering letting it go. If you're also up to your eyeballs in debt and considering bankruptcy, then it may be a good idea to get it all done at once, and start over with a clean slate.

Before you decide which route is best, you'll want to know what options are available, and which approach may be best for your particular situation.

How Much Debt is Too Much?

Most of us carry around debt and it's part of how the American economy functions. Credit is leveraged so that we can buy a home, a car and all of the big ticket items we've become accustomed to. At some point though, the cost of carrying around all that debt, especially high interest credit card debt, can become too much to handle.

So it begs the question. How Much is Too Much?

What Does Filing Bankruptcy Do?

Many people trying to get debt relief have no idea what bankruptcy is, let alone how it works and what is does. This post will serve as an introduction for anyone looking to get an understanding of what bankruptcy can do for you (I'll also add some of what it can't do for you).

Bankruptcy Discharges Debt

How Does Bankruptcy Stop Foreclosure?

Many people are aware that filing bankruptcy can stop a foreclosure, but how exactly does it work? It's important to know that if you are facing foreclosure, bankruptcy can stop it, but it's not always a permanent fix, and there are different powers in different types of bankruptcy.

First, the Automatic Stay

Five Reasons to Choose Chapter 13 Over Chapter 7 Bankruptcy

If you're considering bankruptcy, chances are that a simple chapter 7 is your best bet. However, there are many cases where a chapter 13 could provide more protection and still eliminate a great chunk of your debt.

Here are five big advantages of using a chapter 13 payment plan rather than a chapter 7.

1. Keep All of Your Property

Should I Reaffirm My Car Loan Debt in a Chapter 7?

We all need transportation to live and work normally. If you're thinking about chapter 7 or currently in a chapter 7, you will need to decide what to do with your car.

While you can almost always keep it in a typical chapter 7 case, there are cases where letting it go and getting the debt against it discharged may be the smarter move.

Does a Bankruptcy Petition Preparation Service Do the Same Thing a Lawyer Does?

No, not at all. While a big part of what a bankruptcy lawyer does for you is prepare your paperwork, it goes much further than that. In a nutshell, a petition preparation service functions as a “typing service” of sorts. You provide them with the details on your case, and they complete the forms.

An attorney does the same thing, but can also advise you of your options along the way, and also represents you at the bankruptcy hearing.