When you file bankruptcy, with the court’s help, you can legally eliminate all of your qualifying debt. Some debt can never be discharged, such as alimony, child support, or current taxes. And some like secured debt will not be eliminated if you plan to keep the collateral. Court Decree The court can rule that you  … Read more

When filing personal bankruptcy, most consumer debt can be classified into two categories. One is secured debt like your home or your car, and the other is unsecured debt like medical bills and credit cards. Secured Debt Secured debt has property used as collateral for the loan. If you don’t pay your mortgage, you may  … Read more

Reaffirmation is an agreement you make with your creditors to remain legally obligated to the debt during your bankruptcy case. Usually, this debt could have been eliminated during bankruptcy. When It’s a Good Idea It may be a good idea to sign a reaffirmation agreement if the creditor is giving you something of value like  … Read more

If you owe more on your assets than they are worth, you may be what’s called “upside-down” in your debt. If you sold everything you owed, you would still not be able to pay off your debt. Just being upside-down in debt is not necessarily a reason to file bankruptcy if you can keep up  … Read more

Most consumer debt can be classified into two types, either secured and unsecured. This can be useful to know what type your debt is when you are considering bankruptcy. Secured debt has collateral attached to it, such as a vehicle or home. Unsecured debt is usually based on creditworthiness and a promise to make the  … Read more

The goal of most bankruptcies is to discharge as much debt as possible. You are eliminating your obligation to pay on your late and missed unsecured debts. Bankruptcy is a relatively easy way to get rid of your debt permanently. Another way bankruptcy can benefit you is to stop creditor harassment, and the anxiety associated  … Read more

In the United States, credit card debt makes almost 40% of all consumer debt, accounting for a huge portion of overall household debt. Unsecured debt can be things like credit cards, medical bills, child support, alimony, student loans, and payday loans. Unsecured debt is basically your promise to pay and does not have collateral that  … Read more

With the increase in consumer debt comes agencies offering to “help.” Debt settlement and debt negotiation firms are aggressively marketed toward the consumer. Some agencies promise to make your debt problems go away. When this doesn’t happen, the client finds themselves worse than before they signed up with one of these agencies. Often they are  … Read more

Reaffirmation of debt is an agreement during bankruptcy for you to remain legally obligated to repay the debt. By signing this agreement, you are giving the creditor the right to collect from you even if your debt is discharged in bankruptcy. It is rarely a good idea for the debtor to agree to sign a  … Read more

Almost all consumer debt can be classified as unsecured, such as for credit cards and medical bills, or secured like your home or your car. Depending on what type of debt you have the most of will determine what type of bankruptcy you should file. Secured Debt This type of debt is backed by the  … Read more