One of the best ways to pay down your credit card debt as quickly as possible is to harness your financial resources, free up financial leaks and start directing all that cash to paying off your credit cards. Although this sounds simple enough, an action plan can help you stay focused on the most important aspects of this process.
The 'pros' of Chapter 7 bankruptcy
Each bankruptcy process has its pros and cons. In the case of Chapter 7 proceedings, there are the obvious cons, such as needing to liquidate certain assets, the stringent qualification requirements, the fact it will be a negative spot on your credit report for years and so forth. However, this article doesn't intend to focus on these negatives as the potential benefits are much more important than the cons.
2 things to help you navigate your credit card debt
It's easy to find yourself in out-of-control credit-card debt. All it takes is the decision to put a fancy vacation on your card. If you come home, and then find yourself in the throes of a difficult and costly health condition, you may be tempted to charge your medical expenses on your card. Then, you'll really be in trouble.
An automatic stay won’t always prevent your foreclosure
One of the benefits of filing for bankruptcy is known as the automatic stay. The automatic stay puts a moratorium on your creditors in their debt collection efforts and it's a feature of both Chapter 7 and Chapter 13 bankruptcy proceedings. However, in some cases, the automatic stay won't stop your creditors from taking legal action against you. Here are a few examples of these situations:
Chapter 7 bankruptcy: You won't need to sell all of your things
If you're like most Chapter 7 bankruptcy filers, you will be concerned about exemptions. What personal assets will you need to liquidate in your bankruptcy process? What personal assets will be exempt from liquidation? Fortunately, with advanced planning and legal analysis, you can make an educated guess about which of your assets you'll be able to keep.
