When you file for bankruptcy, certain things automatically become ineligible for discharge, one of which is debt over $675 that was incurred 90 days before filing bankruptcy to purchase luxury items. The problem is the bankruptcy court only defines luxury items as anything that's not necessary for your (or your family's) survival, support, or maintenance, which can leave a lot up to interpretation. Here's how to tell if a recent purchase you made may be exempt from the bankruptcy discharge.
Many people would rather file Chapter 7 bankruptcy rather than Chapter 13, but what should you do if you are eligible for either type? In this situation, a bankruptcy lawyer could help you choose the right option for your situation, and you should not be surprised if the lawyer recommends using Chapter 13. Here are three reasons your lawyer might suggest this option.
You will not have to liquidate
In Chapter 7, you can instantly eliminate any unsecured debts you have, but there is a cost for this.
If you are having some financial trouble, you might want to consider filing for bankruptcy. Of course, you need to know whether you are truly in a bad enough spot to consider it. To help you decide this, you might want to review the following signs of financial trouble that may indicate the need for bankruptcy.
You Are Receiving Daily Bill Collector Calls
Sometimes, a bill collector will call when you accidentally pay bills late.
Nobody wants to think about bankruptcy. However, if you are confronted with such a possibility, then it is absolutely vital that you familiarize yourself with the process. If you don't, then you might suffer even more.
What is bankruptcy?
If you owe money that you don't have and that you have no foreseeable means to acquire, then you are probably going to have to declare bankruptcy. However, bankruptcy is not necessary in all situations.
When it comes to filing for bankruptcy, there are several options open to you. One of the options bankruptcy attorneys would recommend would be to file under Chapter 7. In this course of legal action, you as the debtor are not filing with the plans of paying off your debts as under Chapter 13. Rather, all the assets that you have that are non-exempt are then sold off to your creditors. A non-exempt asset is defined as anything that has not been specified to be exempt under the laws that are in place.