Avoid Bankruptcy

February 23rd, 2008

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One must avoid bankruptcy while he still can. Filing bankruptcy may save one from his debts, yet this has serious demands and consequences so it shouldn’t be dealt with without due consideration.

Avoid bankruptcy and one also avoids its profuse demands. If person is in a bankruptcy plan, he is also expected to stay current on his child support and/or alimony obligations, and to pay his taxes and a lot his other expenses, aside from keeping with the agreed regular plan payments. This time there would be rigid restrictions on how he spends his money. And if he should is not able to complete the plan because of circumstances beyond control like losing a job or a devastating illness, he is lucky enough if the court lets him discharge his debts on the basis of hardship; but if the bankruptcy court won’t give him a hardship discharge or even modify the plan, then the debtor would have to convert to a Chapter7 (sell properties) Bankruptcy if also permitted, otherwise he could just ask the bankruptcy court to dismiss the case. He would still

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owe his debts, although, the payments he made during the plan would be deducted from those debts. Still as it turns out, the creditors may now be able to add on interest they were not able to charge while the Chapter13 case was ensuing. So should one avoid bankruptcy?

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