Discharge of Debt Tag

13 Mar Focus On Bankruptcy By The News Media

The news media is now focusing on what bankruptcy can do to level the battlefield between the mortgage companies and consumers. The sub-prime market is falling! The sub-prime market is falling!

Why should I care about that, one asks? The answer is that the sub-prime mortgage has been one of the major reasons the housing market continued to remain strong in the last few years while the rest of the economy started to sour. The default rate on these loans is very high. Foreclosures have increased 40% to 50% in some states just in the past few months. We all know what interest rates have done in the last two years. As it turns out, bankruptcy may be a way to fight back.

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09 Mar How Many Bankruptcy Cases Can You File?

In most cases, the purpose for filing bankruptcy is to obtain a "discharge." A discharge is a document issued by a bankruptcy judge that serves as legal proof that you have satisfied your obligation to affected creditors. Should a creditor attempt to come after you for a discharged debt, your discharge order will serve as proof that the creditor's claim has no merit. Similarly, a discharge can be used to clean up your credit reports. If your credit files show an unpaid balance on a debt that was discharged, you can use your discharge order to force the credit reporting agency to change its records. What happens if your file for bankruptcy - either Chapter or Chapter 13 - but circumstances lead you back into financial crisis and you have to file again. Are you allowed to file more than one bankruptcy in your life? Fortunately, the answer is "yes" - you can file multiple bankruptcy cases if you need to do so. However, there are some very specific rules that limit these subsequent filings.
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