Bankruptcy can be a loaded term for a lot of people. They have numerous fears about the process, some of which may be founded more in myth than reality.
One of the biggest misconceptions about modern bankruptcy laws is that you can rack up as much debt as possible right before you file. After all, you're going to eliminate all of your debt anyway. Why not add to it before you do?
The amount of money that NFL players make is public knowledge, and people are often astounded by the totals -- with some players bringing in $20 million per year or more. However, you may also have heard that many of them will later face bankruptcy, despite earning more in a single year than some people earn in their lives. In fact, some studies have said that 80 percent of players who retire from the NFL go broke just three years later. Why does this happen?
As much as you plan your future, there are always surprises and unexpected expenses or challenges. Most Americans create some type of savings plan to pay for major expenses, whether that means college, a new car or a dream vacation.
It goes without saying that you never want to find yourself facing a financial challenge. In a perfect world, you would always have enough money to pay your bills, save a bit, and enjoy yourself.
No one expects to file for bankruptcy. It's a terrific tool to use in certain cases, but no one sets out with it as the goal. Instead, it's something that's often necessitated by things that are out of your control. These unexpected events can make it the most attractive option to help get life back on track.
So you've decided that you're going to use Chapter 7 bankruptcy to eliminate your debt and get a fresh start. What types of documents do you need to file with the bankruptcy court? Below are a few things they'll need to go along with your Chapter 7 bankruptcy petition:
One of the most terrifying things about deciding to file for bankruptcy is the possibility of losing your assets, including your home, your personal vehicle, and anything else of value you've acquired, purchased, or inherited over the years.
For most of us, debt problems begin with credit cards. If we lose our jobs or have a health problem or get divorced, we turn to our credit cards "just temporarily."