The reasons why people declare bankruptcy might fill a book. One of the most annoying aspects of being behind on bills, however, has to be the constant contact from creditors. There are several benefits to a chapter 7 filing and protection is one of them. Read on to find out more about creditor contact during a bankruptcy proceeding.
Creditors and Harassment
As anyone who's fallen behind on a bill can tell you, creditors can be very aggressive.
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The principal and interest payment is often the largest monthly expense a homeowner faces. This is illustrated by the 28/36 rule used by the majority of home loan underwriters to establish loan limits for their borrowers. This formula allows for principal and interest payments to total 28 percent or less of the applicant's gross household income. When included with other debt, the total figure cannot exceed 36 percent of the gross annual income.
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Those who have been through the experience likely already know about the sheaths of paperwork that must be filled out and filed for a Chapter 7 bankruptcy. It can take a long time to complete the paperwork, and this requirement can only add to the stress of the situation. For people in a big hurry, there is little-known method of filing a Chapter 7 bankruptcy that trims the required documentation considerably.
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If you have gathered so many past due bills and closed accounts that it is causing you to get further and further behind, then bankruptcy may be your best option. Bankruptcy gives you relief from these things and serves as a way to put those debts you can't pay in your past. Once you have gone through the process of filing bankruptcy, you will need to rebuild your credit.
Get a secured credit card
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If you are threatened with one or more wage garnishments from creditors, this could make it impossible for you to pay other important bills like utilities, rent/house payment, insurance, or vehicle loans and you may not have enough wages to buy necessities like food and gas. There are 5 ways to deal with garnishments so that you won't face disaster.
1. Make sure you still owe the debt.
There have been times when people have either forgotten they paid a debt or they feel intimidated by a creditor even if they do remember they already paid it off.
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