It is not uncommon for a person who is preparing to file Chapter 7 bankruptcy to question whether or not they should continue to try and pay their bills. Most people that are in the position of filing bankruptcy are already behind on many of their bills. They may only pay the bills they feel are the priority while letting the other ones fall behind. When getting behind on your bills the credit card companies in particular, are notorious for harassing people almost immediately. They constantly call, send notices, write threatening letters, and use aggressive collection companies faster than some of the other creditors are known to do. Credit card companies take legal action faster than it would take for the individual's mortgage company to foreclose on their home, so many people send them money to make them go away. Plus, the credit card companies know that the squeaky wheel gets the grease and they know very well that the debtor just wants the annoying calls to stop so they send money to the creditor over some of the others, such as the mortgage company.But if the debtor routinely uses their car payment or mortgage money to pay their credit cards then the car can be in danger of repossession or the home can go into default and the bank will proceed to the foreclosure process. Not to mention all of the late fees and interest will accumulate and quickly add up for the struggling debtor who is just trying to stay afloat. A better option would be to pay on the secured debts as the priority if the individual is going to file Chapter 7 bankruptcy. A Chapter 7 bankruptcy will wipe out all of the unsecured debts such as credit cards, medical bills, personal and payday loans, and some old taxes. This will then free up money for the debtor to pay for the secured property that the individual would like to keep. As long as the debtor wants to keep the secured property and they are able to afford it, then they should continue to make the payments on those debts and they can retain them in the Chapter 7 bankruptcy filing. The debtor should discuss this matter with their bankruptcy attorney to avoid any complications during the bankruptcy filing. Some creditors can argue preferential treatment by paying one creditor over another and cause problems for the debtor, unless the debtor is only paying on the secured debts to avoid repossession or foreclosure on assets they plan on retaining. An experienced bankruptcy attorney is critical to ensure a smooth and hassle free bankruptcy filing and discharge.
The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.
By Bob P Jones
annie annie zuccotti park leymah gbowee austin rivers austin rivers ows
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.