Bankruptcy 0 Down
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Not many people know that people with low incomes can file for bankruptcy when they can no longer pay for their debts. It’s always assumed that only rich people can use this tool. But bankruptcy is complicated which is why you need an experienced low-income bankruptcy lawyer to guide you if you choose this path.
An experienced Zero Down Bankruptcy Attorney is going to look at your situation to see whether filing for bankruptcy is the right choice for you. They will give you alternatives if bankruptcy is not the right choice.
Definition Of Bankruptcy
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Bankruptcy is a legal tool that helps people who cannot pay their debts get a fresh start. That means that all the collection efforts of creditors are stopped once you file for bankruptcy. All the details of how bankruptcy works are contained in federal law.
When you are filing for bankruptcy, you are probably broke and unable to pay your lawyer upfront. Your lawyer could offer you the zero-down option, which means you do not have to make an upfront payment. But you only qualify for this option if you are filing for a Chapter 7 bankruptcy or sometimes a Chapter 13.
Your income must also be over a specific amount and over, or you may ask a third party to sign so that they can share the burden with you.
Do You Need To File For Bankruptcy
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Not everyone who is having trouble paying their creditors should file for bankruptcy. You can file for bankruptcy for the following benefits:
- Your debts will be discharged meaning that you no longer have the obligation to repay your debts
- Your utilities will not be terminated or if they were terminated, they would be restored
- The foreclosure of your home will be halted
- Your car and other property will not be repossessed, and repossessed property will be returned
- Your creditor’s collection efforts including calls, threat letters, and so on will be stopped
- You can challenge a fraudulent creditor that is trying to collect more than you owe
But bankruptcy is a tool with limitations meaning that it does not solve all of your financial problems. For example, a secured creditor is still going to get some money from you over time. In addition, debts connected with child support, student loans, criminal fines, most taxes, alimony, and others cannot be discharged.
That means that you have to pay the debt that cannot be discharged.
You Can Eliminate Student Loans
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There are certain circumstances where you can eliminate your student loans. A court, at the request of your lawyer, can issue a declaratory statement that can eliminate your student loan debt. But your chances of getting this can be increased by the following factors:
- You made a good-faith effort to repay your student loan debt
- You are unable to pay back your student loan because you earn too little
- Your current situation is likely to change
But just because all the above points apply to your situation does not mean you are eligible to have your student loans eliminated through bankruptcy. Talk to an experienced bankruptcy lawyer for help.