If you are way over your head in debt, and you have creditors coming after you, filing for Chapter 7 bankruptcy can help protect you from legal actions. It can help protect you against litigations, wage garnishments, and foreclosures.
If a creditor has sued you in court, filing for bankruptcy is one way to protect yourself from the legal costs of fighting the creditor in court. Filing for bankruptcy will stop the court action against you and will prevent the creditor from obtaining a legal judgement against you.
Payday loans are a great source of emergency income, but there are also ways to misuse and abuse them. Here are some times when you might be looking into a payday loan, and some advice on whether a payday loan should truly be your go-to:
You Have Small, Unexpected Bills
If an unexpected bill makes up a small portion of your income, say one-third or less, it's safe to take out a payday loan.
Owing money to the IRS is probably not a good situation to be in. The IRS can put liens on your property if you owe them money, and they may even be able to garnish your wages. If you owe money to the IRS and are considering filing bankruptcy, you might want to talk to a lawyer to find out if the bankruptcy would wipe out the tax debt you have.
Filing for bankruptcy allows you to discharge a wide range of debts, freeing you from the stress of owing money to a dozen different creditors. However, not every debt automatically becomes wiped away when you successfully pass the tests for filing the Chapter 7 style of bankruptcy. Learn about these six debts that are usually excluded in this type of filing so you can figure out if another type of bankruptcy might work better for you.
If you've recently fallen behind on some bills (or are tired of juggling to avoid the inevitable) and are considering filing for bankruptcy protection, you may also be struggling with other legal problems. Often, bankruptcy comes on the heels of a messy divorce or inheritance battle -- and in some cases, you could find yourself engaged in several simultaneous matters in both state and federal court. However, a new ruling from the U.