If you are a college student, you may find yourself in facing financial struggle. The truth is that many college students do file for bankruptcy today. After all, many college students are only managing their own money for the first time. The same applies to new college graduates.
Are you considering bankruptcy as a student or recent graduate? Read this guide to learn more about college students and bankruptcy options.
Chapter 13 bankruptcy, which is also known as a wage earner bankruptcy plan, allows individuals with a steady income to pay back a part of their debt. The amount the debtor pays back is based upon their income, monthly bills, and other factors. Whatever is left over is considered disposable income, which the debtor can keep.
Unfortunately, circumstances change, and if a wage earner loses their job or if their income decreases dramatically during Chapter 13 bankruptcy, they might not understand what to do next.
If you meet with a bankruptcy lawyer and decide to file for bankruptcy, the lawyer will tell you that you must take a credit counseling course before he or she can file your bankruptcy documents with the court. This course is required for several key reasons, and here are three of them.
To learn more about the alternatives to bankruptcy
Bankruptcy law requires that everyone take two credit counseling courses when filing for bankruptcy, and the first course is required before the person files the paperwork for the bankruptcy.
If you currently own a small business and took out a loan when you first opened your establishment, it can be frightening to think that you may need to declare bankruptcy if you are having trouble paying back your loan. Instead of giving up on your business and damaging your credit rating with a bankruptcy, seek advice from an attorney who represents commercial owners who have taken out business loans.
Chapter 7 bankruptcy is very good at providing filers with financial relief, and that relief can mean a lot of things. It might mean the complete elimination of debt, the cessation of bill collection activity, and being able to stave off foreclosure and repossessions. The bankruptcy codes underwent some changes a few years ago and the new rules deserve a look. Read on to learn more about some of these changes, including the residency rule.