Bankruptcy Due To Divorce Or Medical Problems Can Be Frustrating

Just like love and marriage are said to go together, bankruptcy and divorce are just as intimately tied. The dissolution of marriage brings with it a whole host of ramifications, some of which are emotional, but many of which are also fiscal. Even with a great divorce lawyer you may find that you are still on the hook for a plethora of jointly incurred debts that will not go away even as the magistrate signs the decree of divorce.

At issue is the fact that the law seeks to hold harmless the companies that have offered you and your spouse credit in good faith. They are not to be punished for your marital bliss’ turning into a living nightmare and thus a divorce filing may be useful in divvying up the assets and liabilities between the parties, but even a liability that was taken on by one side is still executable on both parties.

Thus, the only way to avoid rude awakenings is as follows:

To avoid bankruptcy, divorce bound couples should take the other person’s name off any credit accounts.
Joint accounts need to be closed immediately.
Loans, such as car notes or home loans, should be refinanced in only one person’s name.

If bankruptcy seems unavoidable in the aftermath of a divorce, find out what the legal ramifications are if you file for the bankruptcy but not your ex spouse. Ensure that there is no way she or he can come after you when the creditors decide to go after her or him solely.

A medical bankruptcy is perhaps one of the most frustrating legal proceedings a consumer will have to face. For reasons beyond their control, a medical problem required costly treatment, which then led to mounting medical bills. Before long, the various requests for payment are too numerous to be met head on by the consumer and she or he will most likely begin to fall behind in other areas of bill paying as well.

Even if the consumer does not fall behind on their secured and unsecured debts, the fact that medical bills are routinely turned over to collection agencies will before long lead to a downward spiral that affects the consumer’s ability to obtain credit, maintain their home and transportation needs, and eventually lead to the individual’s filing for bankruptcy.

While there is no such thing as a medical bankruptcy per se, it is a time commonly used by debtors to explain what has led to their financial downfall. In many cases those facing medical bankruptcy understand that their failure to plan for rising healthcare costs has led to their fiscal demise, yet at the same time, the necessity of keeping up with regularly scheduled payments and living expenses makes it next to impossible for the average American to set aside enough money to plan for these eventualities.

Even as there is precious little that may be done to affect change, there are movements to have healthcare costs streamlined, to make it easier for consumers to find small personal loans that permit for manageable payment options, and also movements within the physicians’ offices to accept payment plans after services have been rendered.

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Beware Of Bankruptcy Pitfalls

You have medical bills, child support payments and are receiving your eighth phone call today about your utility bills. Bankruptcy is becoming as heavy on your mind as the debt collectors are on your back. Though bankruptcy will relieve you from your debts and provide you with debt collection freedom, you should be aware of the pitfalls associated with bankruptcy.

Credit reports will carry the details of your bankruptcy for up to 10 years in time. This information is released as public knowledge and can be shown to your friends, family and co-workers through the newspaper. You must have money for a down payment and secure income in order to be qualified for a home loan after bankruptcy. Some employers require credit reports for job position qualification. All of these concerns are involved in bankruptcy. You may not be able to purchase a home and you may lose out on a wonderful job position due to a single choice.

There are other options to debt freedom other that bankruptcy. Choosing debt consolidation can save you time and money as well as relieve you from debt credit harassment. Your credit cards and unsecured debt (utility bills, medical bills, etc.) are consolidated into one monthly payment that is set up according to your specific budget. This method can lower or eliminated high interest rates and stop both late fees and over the limit fees. You can gain your financial freedom back and not put a large blemish on your credit report.

Though bankruptcy can be the option for some debtors, it is best to speak to both a bankruptcy attorney and a debt consolidation representative in order to have your financial situation reviewed by professionals, and to have the best information available to make the proper choice. Avoid credit woes and possible pitfalls by learning about all of your debt assistance choices.

Many people who consider bankruptcy are afraid that they will lose their personal possessions as a result of the bankruptcy. It is always best to research and speak with a bankruptcy attorney regarding your specific situation when it comes to filing. Each case is different and must be looked at individually by a trained attorney that can clarify any rules or regulations that are involved with your case. In most cases, you should not have to give up your possessions as a result. Many times a law will allow for a considerable number of property exemptions that allow you to remain in control of your affects. The state’s laws throughout the course of the bankruptcy case protect your property.

Every case is different and each state has its own laws regarding bankruptcy. The courts will look at your individual case and decide whether you should be able to claim the exemptions as state or federal exemptions, and this decision will determine the types of property that you are allowed to remain in control of. Many states will allow you to claim the exemptions that will allow you to keep more property, while other states allow you make the decision as to which federal or state exemptions that you would rather use. Since you may have the option of which exemptions you would prefer, it is a good idea to research the various exemptions on your own for your state and its laws, before you start the proceedings for your bankruptcy. By researching your possibilities, you are eliminating any chance of being surprised with varying possibilities once you have started with the bankruptcy process.

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Situations That Leads To The Filing For Bankruptcy

In the financial world, one thing lingers to be perpetually true- that is filing for bankruptcy should always be considered as the last resort. Bankruptcy has become a common word especially in the financial world where many people strive to make the best out of their money in order to have a good quality of living. The image of bankruptcy has grown over for years as a desperate act and as a sign of weakness especially in terms of financial and management standing.

This fact makes bankruptcy a thing to be avoided by many because of its long term effects on the credit-worth of a person filing for it. It is greatly necessary to examine all things thoroughly before considering bankruptcy for it entails a lot of personal and emotional difficulties in the years thereafter.

This false image of bankruptcy is, however, not true to all situations. Though it still remains that declaring bankruptcy ought to be the last thing to enter one’s mind, the impression of it as a reflection of the person’s financial mismanagement is not always true. There are also situations wherein declaring bankruptcy is the solitary viable option of regaining control over huge amounts of debts and mountains of liabilities.

One inevitable reason which may lead a person to apply for bankruptcy amongst thousands of other applicants is the occurrence of financial difficulties brought about by a divorce situation. Statistics show that thirty percent of all bankruptcy applications root from this case because most often than not, after a divorce challenge, all the liabilities becomes halved between the two petitioners making their financial life a lot harder than their married state. Unpaid bills and credit cards with towering interest rate is a primary cause of the mountainous debt accumulated over the years. When this happens and the person finds no single alternative in remedying the situation, applying for bankruptcy is already a considerable option.

Another compelling situation which one can experience is the rise of bills with regards to an unexpected hospitalization and medical services. Although some have insurances for medical endeavors, there are times when the payments to be made are not covered by insurances or even if covered, the bills have already exceeded the limitations for medical support. This scenario leads to a very saddening and challenging life full of debts and interests due to unpaid bills in hospitalization. In this case, bankruptcy becomes the only way to resolve it.

Also, a common case which covers about ten percent of all bankruptcy applicants is the unpaid credit cards and student loans of those enrolled in college. People who are faced with mounting credit card bills coming from many credit companies will find the situation very daunting. If no extra income source can be found immediately, there is no way out but to declare personal bankruptcy.

Bad business venture, sales flop, new product launching or collection problems can truly damage the cash flow of a business. This has not spared even the biggest multi billion corporations. Such situation can render executives insolvent and thus file for bankruptcy.

Although bankruptcy can become a very hard strife for a person lacking financial resources, there are available services which can offer help for a person to recover and regain control his financial predicament.

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