What Can Bankruptcy Do?

Recently, I was thinking about how so many people in this country are affected by credit card debt. Almost everyone I know has some amount of debt. Sometimes it’s student loans, sometimes credit cards, sometimes it’s taxes. I know you can get rid of some of your debt by declaring bankruptcy, but can you get rid of all debt through this process? I wasn’t sure how it all worked but I read some insightful stuff on the website of Erin B. Shank. Erin B. Shank is an attorney that has been working in bankruptcy law for more than 30 years. She helps her clients get out of massive amounts of debt, avoid lawsuits, and start to create a new life for themselves.

There are special provisions for bankruptcy that apply directly to members of the military and veterans of the armed services. When you are a veteran or active member, housing waivers and involuntary allotments are something that you are likely to deal with while finding housing. Attorneys like Erin know how to take advantage of these documents and help military members get the most out of their bankruptcy.

Some people might consider bankruptcy so they can do away with their medical bills. The costs of healthcare have gone through the roof over the past few years. When someone becomes disabled, their cost of living can more than triple overnight. Not only this, but they may have lost their ability to provide income. Declaring bankruptcy can absolve you of medical debts and expenses, creating an opportunity to gain financial traction again.

Most people think that bankruptcy won’t affect the amount you owe the government in taxes, but it turns out that this is not true. Many federal income taxes can be discharged or reduced upon declaring bankruptcy. This sort of thing is what separates a good lawyer from a great lawyer. A lawyer with years of experience under their belt will have the ability to look at tax debt and reduce this as well as other debts you may be dealing with.

Bankruptcy will not affect one area of debt that many people deal with. That’s student loan debt. If you declare bankruptcy, you will still be held responsible for loans taken out to pay for higher education. There are ways to consolidate this debt and turn it into another type of debt before declaring bankruptcy, but it cannot be erased in itself.

When it comes down to it, declaring bankruptcy is going to come with some consequences. Declaring bankruptcy makes it very difficult to get loans of any kind for years going forward. Every time you try to purchase a car, open a credit card, or get a home loan, institutions are going to see that you declared bankruptcy, and this will affect your interest rates and access to loans. Because of this, bankruptcy should never be taken lightly, and should only be used in dire circumstances.

Foreclosure Defense

Interest rates are expected to increase for the first time since the recession of 2008 as the American economy has finally regained its footing. This is a good sign for the overall economy, but may leave many future home buyers anxious to receive their rates on borrowing. Although foreclosure rates are down 3 percent in 2015, foreclosure is still something that haunts less wealthy home owners nightly. A home is the most valuable asset that a family can own, especially if there are kids being raised in it. No one wishes to default on their mortgage payments and see their home and livelihood be taken away, however, there are currently many financial maneuvers one can make to avoid this.

Every foreclosure case is different and unique, but through basic protection methods many homeowners can seek the protection they need. According to Bradford Law Offices, PLLC, the typical options for defending against foreclosure include, mortgage modification, negotiating with lenders, and if all else fail pursuing bankruptcy protection. Mortgage modification and negotiating with lenders entails homeowners working with lenders to reorganize the current payment plan to something that the homeowner can afford. Financial institutions and creditors are welcoming to this option as they rather see some form of payment than nothing at all. Pursuing bankruptcy protection contains with it a stigma of failure, but when times become desperate it is a perfectly viable way to protect your home. Under chapter 13 bankruptcy, an individual is able to immediately halt any foreclosure proceedings upon filing the bankruptcy petition. Furthermore, it creates an automatic stay from harassing creditors and is perfect for debtors with more financial resources such as homeowners. Owning a home is the most valuable asset a person will likely have in their entire lives, and it is vastly important for homeowners to understand the methods they can utilize to protect it.