Many people know that they can file for a chapter 7 bankruptcy and get rid of their debts, or at least most of them. There is, however, another big benefit from filing bankruptcy and it happens before you even know it. Read on to find out how the automatic stay can help you deal with your financial situation in no time flat.
Pauses Collection Activity
When it comes to being behind on bills, few creditors are more aggressive than credit card companies and collection agencies.
If a chapter 7 bankruptcy is likely in your future, you may want to learn a bit about what not to do just before you file. Your financial situation, including your spending, may be subject to a certain "look back" period by the bankruptcy trustee. Read on and learn how to avoid getting yourself into trouble by violating the bankruptcy codes.
1. Don't go wild with your credit cards once you decide to file for a chapter 7 bankruptcy.
While a chapter 7 bankruptcy is an amazing tool in your efforts to move forward with a fresh financial beginning, you should be aware of some types of debts that require special attention. As you may know, credit card debt is one of the largest debts most consumers own, and the beauty of chapter 7 is the opportunity to say "so long" to all of that. Read on to learn about a few types of debts that may only be discharged under certain circumstances and which ones you'll need to deal with outside of bankruptcy.