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Should You File for Bankruptcy?

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What to know about bankruptcy options chapters, so you can choose what's best for you.

Chapter 7 Bankruptcy... Chapter 11 Bankruptcy... Chapter 13 Bankruptcy ... Which to choose? The decision depends on a number of factors, and, that said, this overview will give you an idea of which chapter is best before you consult with an attorney.

Does my life stop if I file for Bankruptcy?

Short answer, No. Simply because you have decided to file, or are considering filing a Chapter 7 or Chapter 13 Bankruptcy, does not necessarily mean you have to stop living your life. In fact, it's just the opposite. The purpose behind bankruptcy is to give you a fresh economic start allowing you to start living your life without being held down by excessive debt and interest rates and fees. The laws were created to permit you to not only live your life, but to live it with a clean slate.

Debt Settlement vs. Bankruptcy

Debt settlement companies attempt to significantly reduce borrower's debts by negotiating directly with creditors to create a repayment plan on behalf of a debtor. As part of the plan, a borrower agrees to pay creditors a new rate of interest over an extended period of time. The debt settlement plan restructures rather than eliminates the debt.

What You Really Need to Know about Bankruptcy

pmce22.jpgCarried away by the holiday spirit and now find yourself crash landing on a pile of debt? Do you see yourself chipping away at that debt for years without standing on solid financial ground? Well then, it's time to talk about options, including bankruptcy.

Chapter 13 Bankruptcy and Tax Returns

When you file for Chapter 13 Bankruptcy in Delaware, in addition to the required paperwork and petition with the court, there are also necessary documents which must be provided to the Chapter 13 trustee. Various jurisdictions, districts, and trustees, can have different policies regarding the documents which must be provided, but every debtor, regardless of the jurisdiction or trustee, is required to provide the trustee with four years of their most recently due tax returns.

Can The Bank Take My Money If I File For Bankruptcy?

Banks generally cannot take your money just because you have filed a Chapter 7 or Chapter 13 Bankruptcy. When your petition is filed an automatic stay goes into effect an all activity to collect on any debts you have must stop. This includes phone calls, letters, foreclosures and most asset seizures and garnishments. Also included within the automatic stay is any action a bank may take to collect money which they believe they are owed from you. Occasionally a bank may have the legal right to "set-off" any debts you have with the bank with any deposits you may have on account if there is a set-off agreement related to your accounts. Before acting or exercising their rights on the set-off, the bank must first get permission from the court by way of motion, for relief from the automatic stay.

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