Any Tom, Dick and Harry who is not able to repay the debts cannot file for chapter 13 bankruptcy. Some of the eligibility criteria to file for chapter 13 are as follows :

• Any business even if it is sole proprietorship is not eligible for filing chapter 13 bankruptcy. Only the debts, that are linked to the business and that the owner is personally responsible for, can be included for filing chapter 13 bankruptcy.

• The personal bankruptcy of commodity brokers and stockbrokers cannot be included for filing chapter 13 bankruptcies.

• If the secured debts are more than $1,010,650, the debtor cannot file for chapter 13. Home loans and the filing of lien by the IRS are the examples of secured debts.

• If the unsecured debts are more than $336,900, the debtor cannot file for chapter 13. Some prominent examples of unsecured debts are medical bills, back utility bills, card debts, legal bills, and charges of the department store. (more…)

When a person is unable to repay the debt to creditors then he must take the route to protect himself by legal method. Bankruptcy is the state of complete inability of a person to pay the debt to the creditors. A person can file a bankruptcy if he/she thinks that he/she can not pay the debt to the creditors or needs more time to pay the debt. When the bankruptcy is filed, the person deals directly with the bankruptcy court and not with the creditors. Creditors stop dealing with the debtor and they also deal directly with the court. This bankruptcy is beneficial both for the creditor and the person who must pay the debt to the creditor.

What can lead to bankruptcy?

There can be numerous reasons which can lead a person to file bankruptcy. The most important of them are listed below:

1) Some doctor bills which you were not expecting
2) The last date for paying the debt to the creditor
3) You are unable to repay the debt you took from the creditor due to many personal reasons like you have to move to some other city and need some money to reestablish yourself there.
4) You have to spend whole of your money on some other work like on the admission of your child.
5) You have to pay your credit card bill (more…)

Bankruptcy can save you from huge debts. It is the best method to delete your previous bad record and start from the beginning and build your good credit score. This article will tell you about some advantages of filing bankruptcy.

You are out of it

After filing bankruptcy there is no need to make more debt deals with the creditors. This is no longer your problem. It is now the issue between the creditor and the bankruptcy court. Like this you will be able to concentrate on your own problems like how can you rebuild your credit score etc.

No more calls and letters

If you are unable to pay debt for a month then you will start receiving hundreds of calls and letters from the creditors. Creditors always want the debt to be paid on time. When you file bankruptcy, the creditor can not make you even a single call or send you a letter. They are not allowed to do that legally. If you are still receiving the calls from the creditor then you are allowed to take the legal action and ask your lawyer to deal with them. (more…)

Filing Bankruptcy can be only solution for you when you are unable to pay the debts to the creditors. But it can go against you in many ways. You have to consider a lot of points before filing bankruptcy as it can hurt you both socially and financially. Following are the disadvantages of filing bankruptcy. So before thinking about bankruptcy gather full knowledge about its drawbacks.

Bankruptcy will not give you full protection

If you are filing bankruptcy because of one of the following reasons then the bankruptcy is useless for you:

Federal Taxes, Student loan and child fees

These are some payments which you have to make in any case and they will not get discharged in any case even in the case of bankruptcy. So make sure that there is some big reason behind your filing for bankruptcy. Do not go for bankruptcy just because you are unable to pay student loan. Because you will get nothing for that and you have to pay the student loan. (more…)

If you are facing the bankruptcy problem first time then it can be a very difficult time for you. Bankruptcy can take away all your assets from you in just few minutes. Everyone is allowed to file bankruptcy and then start their financial career again. The biggest advantage of filing bankruptcy is that you get protected by the law and you will not receive calls from creditors that you have to pay them debt. If you think you cannot pay the debt to the creditors then it is recommended that you go the legal way and file bankruptcy. If this is the first time you are in debt then you must not consider other alternatives for the protection of your assets other than bankruptcy.

How to buy a home after filing bankruptcy

Many people think that it is impossible to rebuild your credit after filing bankruptcy. You can no more buy a home. However, all those statements are not true anymore. There are now many mortgage lending industries which are providing loans to people who file bankruptcy few month or years ago. These lenders usually don’t care whether you have any relation with bankruptcy or not. They just provide you the loan for home. (more…)