Excessive debt and unexpected costs are the main causes of bankruptcy in the US, debts are out of our control and consequently the desperation reaches the point of considering bankruptcy.
Bankruptcy in US gives the option of removing certain debts to avoid annoying collections or repossessions that they can not do, it is clear that bankruptcy does not allow the settlement of all debts.
But and what are the advantages if I file for bankruptcy in the US?
Bankruptcy laws in the US were created especially for those who acquired a debt with the intention of paying it but because of the situations they are living, it is impossible to continue answering them by the obligation. If this is what happens; then bankruptcy may help:
– Prevent and delay the embargo make our wages or property.
– Postpone or stop a judicial auction, eviction or litigation that is on the court.
– When you declare bankruptcy in the US, the complainants can no longer contact or make foreclosures, either to the goods or to pay and can not sue the debtor.
– Bankruptcy allows a person to eliminate debt as credit cards, personal loans, medical bills etc. but bear in mind that bankruptcy does not erase debts such as child support, alimony, student loan, financial obligations are acquired through a criminal conviction, physical injuries from car accident under the influence of alcohol, or failure to pay taxes last 3 years.
The US bankruptcy alternatives
In the country there are now two alternatives to bankruptcy one it is Chapter 7 and the other is Chapter 13.
Chapter 7 This option allows you to remove part or all of the debts incurred if your liquid assets are used to pay the debt, that is, if you have current account (checking), savings account that can be used as part payment of the debt.
Chapter 13 This option allows you to remove some or all commitments appropriating debts through a payment plan that gives a period of 3-5 years for this plan it must be brought before a court and authorized by a judge. Once you have met the deadline to pay the debt, any balance that is left will be liquidated immediately.
Keep in mind that to apply Chapter 7 is required to deliver each of the actual assets you have, but if you prefer to keep them, then you should apply for Chapter 13.
Maybe you do not want to incur a bankruptcy to give solution to your debts, therefore, mentioned these other alternatives that may help in a situation of financial crisis.
– Perform a settlement with claimants.
– Agree on a reduction of payments to claimants.
– Ask for advice to an approved agency that credit counseling.
– Selling the assets or property to pay the debt.
– Getting loans through mortgage as collateral to pay off debts.
The bankruptcy laws in the US have a degree of complexity that is necessary to consult a lawyer, for using it you can look the best choice, according to your case and if necessary bankruptcy or not.