Filing for bankruptcy is a big decision. Many people may suffer financial hardship for a variety of reasons, from costly medical bills to job loss, and can find themselves looking for debt relief through filing bankruptcy. While filing is a freeing in some ways, such as not having to worry about bill collectors calling during dinner, or while you are at work, it can also mean taking a setback to your credit score. Although the thought can seem a bit scary, it isn't the end of the world and it is possible to rebuild your credit after bankruptcy.
As you create an estate plan, you will be faced with many questions. Here is one of the most important: What are the benefits of creating a trust?
As you go through the estate planning process, you will have questions and concerns. It is important to address each one, ensuring that you don't run into a situation that drags down you and/or your family in the future.
Special or unforeseen circumstances may leave you unable to pay your debts, and anyone can file for bankruptcy. However, changes made to bankruptcy laws in 2005 require debtors to pass a means test in order to qualify. Because Chapter 7 bankruptcy discharges your debts, you must first prove you are unable to pay them by passing a means test.