Use Bankruptcy Law For Credit Card Debt Elimination
Bankruptcy is not something that everyone wants to do, but there are times when your credit card debt and mortgage payments get behind and it becomes a decision whether or not to file bankruptcy. With the US financial meltdown and job loss at record numbers, it seems inevitable that many people will be forced into filing chapter 7. This is not the end of the road fortunately, folks can take a lesson from their financial mistakes and press on for a better tomorrow with credit card debt elimination. With the new bankruptcy law in place it’s a little bit harder to file. Now, under the new Bankruptcy Law everyone must take a means test, which is a test that requires your income to be at or under the median income of your state. For most people filing bankruptcy is the last and only resort.
The minute you file bankruptcy the court orders an automatic stay and it immediately stops most actions against your property by a creditor or collection agency and it also will temporarily stop any lawsuit or foreclosure filed against you. Essentially, when you file bankruptcy, anyone who you owe money to must prove to a bankruptcy judge that you do in fact owe them the money. The judge will then decide based on your assets and current income who and what bills get paid with remaining assets. This day can be a powerful tool if you’re being evicted, foreclosed on, you’re behind on your utility bills and being threatened to be shut off, you’re late on your car payment and numerous other reasons. You can see how this would buy you time when you are in financial distress.
