Chapter 13 stay foreclosure immediately, while a mortgage modification get provide lower monthly payments and eventually stop the process.
You should file for bankruptcy if you have back payments that you can’t make.
You can modify your loan while you are in bankruptcy, and sometimes that is the best thing to do.
Does bankruptcy clear IRS debt? Courts do discharge tax obligations. How much depends on how much you have and how much you earn.
There is a 10 year statute or limitations for most tax liens, but authorities will probably levy your assets before then.
Only the federal government may garnish your 401(k) funds.
What can you do after bankruptcy? Rebuild your credit by taking out small, secured loans and pay them back on time.
Don’t stress too much about keeping or getting a job. Your bankruptcy won’t affect it in most cases.
With patience and discipline you may get a car or home sooner than you think.
What you keep when you file Chapter 7 depends on what exemptions the court allows.
Common ones include your home, car, retirement accounts, personal property, and tools you need for work.
You may even be able to keep your cell phone and credit cards.
What you lose when filing Chapter 7 is non-exempt property. It leaves what you need to live and work.
It makes sense for you to stop paying some bills in bankruptcy but not others.
The trustee uses money in bank accounts over a limit to pay creditors.
How much debt for Chapter 7? There is no minimum. But there is a means test based on your income and expenses.
Learn what you need to know about qualifications and how to file.
Depending on your situation it may not be bad to file for bankruptcy. In some cases it is necessary, but in others it may not