A debt of even a couple thousand dollars can be enough for debt collectors to hound you. To prevent these calls from becoming abusive, lawmakers enacted the Fair Debt Collections Practices Act, which covers all household, family and personal debts.
People face financial strains for various reasons. In some cases, a Chapter 7 or Chapter 13 bankruptcy can help to provide relief and to get debtors on the track to financial stability.
If you are filing either Chapter 7 or Chapter 13 bankruptcy, you must attend what is known as the 341 meeting.
If you have fallen behind on your car or truck payments, the lender may be threatening to take it back. You need your vehicle for work, to take the kids to school, to go grocery shopping. How will you manage if the repo man comes?
Many people in Houston are struggling with debts. Some of these individuals may find themselves stressing over how to pay their car notes, mortgages and household expenses each month. As stressful as it is dealing with debt and not knowing where your next dollar may come from, there is hope in the form of bankruptcy.
Once the bankruptcy process is complete and you are debt free, it is not time to rest easy. Of course, filing for Chapter 7 bankruptcy will put your burdens behind you and allow you a fresh start. Your next goal is to stay on the right financial track.
If you are considering bankruptcy, you need to go into it with an open mind — and open eyes. While it can give you a fresh start if you are heavily in debt, it will not work miracles.
Personal bankruptcy filings have been increasing. According to statistics from the United States bankruptcy court, over 1.5 million people file annually. You may be considering resolving your debt problems this way, and clearly you are not alone.
There seems to be some sort of impression on the internet that bankruptcy follows some kind of lavish spending spree that got out of hand. While oppressive credit card balances can cause a great deal of strife, most consumers work hard to manage their bills. The days of cash only purchases, or the use of a checkbook on a daily basis with the regular balancing process, have given way to the use of plastic.
If you're thinking of filing for bankruptcy, don't be ashamed. Declaring bankruptcy can wipe the slate clean and give you the fresh start you need to manage your finances. Learn how you can use bankruptcy as a tool to become debt free and develop positive habits.