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  • Writer's pictureDaniel Rodriguez

When money troubles get out of control

Choosing the chapter Chapter 7 represents a majority of filings and can discharge most personal debts. However, property may be seized or sold. Protections exist for various assets, including retirement account balances. Alimony, tax debts, and student loans will remain on a consumer’s “balance sheet.” Qualifying requires passing a means test to prove your income is below the median. If it doesn’t, another option exists. Chapter 13 bankruptcy is a repayment plan that usually lasts five years. It also allows for the possibility of a certain amount of unsecured debt forgiveness while allowing filers to keep some of their personal property.

What not to do While failing to disclose certain assets in bankruptcy filings may be tempting, the consequences are significant, including the seizure of all assets and potential criminal charges. Maxing out credit cards and accessing retirement funds is also not recommended. A fresh financial start can make a difference in your financial bottom line and overall quality of life. Gone are the stressors over finances as you look forward to a more financially stable future.

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