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If someone owes over 13000 in defaulted loans and is unable to pay them would filing bankruptcy be the best idea?
Wiki User
∙ 17y ago
Only if you are in threat of being garnished or a lien may be placed on your property. A bankruptcy lasts as long as a bad debt. Bankruptcy just costs money. You have a better chance of disputing the loan in a few years were as bankruptcy lasts longer. Your best bet is to talk to a lawyer, but they will almost always tell you to file. Also, the laws for bankruptcy are a lot harder now.
Wiki User
∙ 17y ago
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What can you do to help clean up debts on your credit report?
Besides paying your debts off or filing bankruptcy if you are unable to pay off these debts there is nothing you can really do to clear them from your credit report. Most debts stay on your credit report for seven years.
What must someone have to secure home loans after bankruptcy?
Generally, immediately after declaring bankruptcy, an individual will be unable to get any home loan of any kind. It usually takes at least two years of good behavior and debt eradication before one could be considered for a loan.
Is bankruptcy immoral?
Questions of morality are difficult to answer outside of the framework of your own religious convictions. However, from a lay perspective, bankruptcy is certainly legal. Consider this fact: over 91% of people filing for bankruptcy have suffered a job loss, a medical event, or divorce. Those who fraudulently file for bankruptcy are breaking the law. Those with legitimate cause to file are following the law, which humanely allows for a clean slate when debt threatens to make life untenable. Certainly, one should not rely on bankruptcy, but it is reassuring to know that debt relief is available when it is desperately needed. In the past there were debtor's prisons, and people would actually be jailed for being unable to pay their debts. Another thought to consider is whether it is moral of credit card companies to charge the interest rates that they do, and to rarely consider lowering rates or payment amounts for individuals unable to keep up, financially.
Can you get an auto loan after filing for bankruptcy but before it is discharged?
Yes, you can get an auto loan before bankruptcy discharge. If you have filed a chapter 13 bankruptcy, you must receive permission from the court trustee. Contact your attorney to begin the process. The court will set limits as to maximum loan amount and monthly payments. DO NOT apply for a loan of any type before getting approval from the court! Doing so could be grounds for dismissal of your bankruptcy, depending on the regulations of your particular court district. If you have filed a chapter 7, there are certain automotive lenders who will finance you after you have attended the (sect. 341) meeting of creditors. However, if you are unable to find one of these lenders, your discharge is usually granted within a few weeks of the 341 meeting and you will be able to purchase then.
What is the basic meaning of bankrupt?
A trader who secretes himself, or does certain other acts tending to defraud his creditors., A trader who becomes unable to pay his debts; an insolvent trader; popularly, any person who is unable to pay his debts; an insolvent person., A person who, in accordance with the terms of a law relating to bankruptcy, has been judicially declared to be unable to meet his liabilities., Being a bankrupt or in a condition of bankruptcy; unable to pay, or legally discharged from paying, one's debts; as, a bankrupt merchant., Depleted of money; not having the means of meeting pecuniary liabilities; as, a bankrupt treasury., Relating to bankrupts and bankruptcy., Destitute of, or wholly wanting (something once possessed, or something one should possess)., To make bankrupt; to bring financial ruin upon; to impoverish.
What does the term 'corporate bankruptcy filing' mean?
Corporate Bankruptcy Filing is the name given to the process when a business becomes insolvent and unable to meet their debt commitments. This is in contrast to personal bankruptcy where an individual becomes insolvent.
What is the Bankruptcy Code?
The Bankruptcy Code refers to a business filing bankruptcy. If a business is unable to pay it's debt or pay it's creditors, the business or it's creditors can file bankruptcy. Upon filing bankruptcy, the business ceases operation, a trustee sells the assets, and then gives the proceeds to it's creditors.
Can a landlord sue for damages and back rent after you filed for chapter 7 bankrupcty?
There is nothing procedurally that prohibits the filing of a suit against someone who has delared bankruptcy. The bankruptcy trustee will put that landlord on a waiting list with other creditors. Of course, the practical upshot is that the bankruptcy court may find that the debtor is unable to pay any debt - then, the LL is wasting time.
What does bankruptcy allow congress to do?
Bankruptcy laws allow Congress to establish a framework for individuals and businesses to seek relief from overwhelming debt by offering various forms of bankruptcy protection. Congress can create laws that determine the eligibility requirements, the process of filing for bankruptcy, and the rights and obligations of debtors and creditors involved in the proceedings.
When did Frost Bros. end?
Frost Bros., a department store chain, closed its doors in 1989 after filing for bankruptcy. The retailer struggled with financial difficulties and was unable to continue operations.
What describes bankruptcy?
a legal declaration that you are unable to repay your debts
What is meant by voluntary bankruptcy?
Voluntary bankruptcy refers to a situation where an individual or business entity chooses to file for bankruptcy in order to have their debts discharged or restructured. It is initiated by the debtor themselves, rather than being forced into it by creditors or other external factors. By filing for voluntary bankruptcy, the debtor acknowledges their inability to repay their debts and seeks legal protection and assistance in resolving their financial situation.
How can one declare corporate bankruptcy in the UK?
To be considered bankrupt, a court has to issue a bankruptcy order against you. One can apply to the court for bankruptcy if they are unable to pay their debts.
What can you do to help clean up debts on your credit report?
Besides paying your debts off or filing bankruptcy if you are unable to pay off these debts there is nothing you can really do to clear them from your credit report. Most debts stay on your credit report for seven years.
Do you know bankruptcy?
Bankruptcy means someone is legally unable to pay their debts as agreed. The procedure of verifying someone truly is bankrupt can take up to 8 months in most cases, and those who have some assets will be required to pay back some or most of their debts over a 2- to 5-year time period. There are two major types of bankruptcy definitions that apply to consumers: Chapter 7 and Chapter 13.
What are the two chapters a business can file bankruptcy under?
You can file bankruptcy for two possible reasons: you are unable to pay your debts or your creditors file for bankruptcy if you owe them more than 1000 dollars.
What must someone have to secure home loans after bankruptcy?
Generally, immediately after declaring bankruptcy, an individual will be unable to get any home loan of any kind. It usually takes at least two years of good behavior and debt eradication before one could be considered for a loan.
