The main goal when filing bankruptcy is to allow honest individuals who have had unfortunate events occur which have lead to severe debt, to have these debts discharged, thus relieving the debtor from their previous debts. This allows the debtor to pursue a fresh financial start. This was the decision of the Supreme Court in 1934. If you are a resident of Delaware who is facing severe debt and you are considering filing bankruptcy, you can find the debt relief that you so desperately need. In order to do so there are two main requirements, which are necessary to complete when, filing bankruptcy in the state of Delaware.
Credit Counseling
The Bankruptcy Act of 2005 requires that all persons filing bankruptcy after the date of October 17, 2005, must receive credit counseling 6 months prior to filing bankruptcy. They must also complete a financial management course after the file of bankruptcy.
Means Test
This same act of 2005 requires an individual's average income and expenses from the previous six months to be compared to the median income of the state. If your income level falls below the median you are able to choose to file Chapter 7. If your income level exceeds the median, your income will be further reviewed for a decision between Chapter 7 and Chapter 13.
Once these areas are completed the bankruptcy judge will make the decision on any of the matters connected to your bankruptcy. They have the final word on which chapter you are eligible to file and which debts will be discharged. The process is mainly administrative and processed outside of the court. Contact your local courthouse for details on who to contact as well as any other bankruptcy details you may need.
There are four typical reasons that you may need to speak with an attorney who specializes in bankruptcy. These four reasons include wage garnishment, foreclosure, repossession and debt collection harassment. These four reasons can lead anyone to consider bankruptcy.
Garnishment
When wages are garnished for child support or alimony, a person can easily become further into debt. If a jobs wages care for that person and their personal lifestyle and garnishment affects the persons ability to make utility payments versus buying food then a bankruptcy attorney is needed.
Foreclosure
If mortgage payments are behind and your home is in danger of foreclosure you should speak to a bankruptcy attorney. There is a bankruptcy chapter that will allow you to retain your home and regain control over your payments.
Repossession
If you have not been able to make payments for your vehicle and it is being threatened by repossession, contact a bankruptcy attorney to help you keep your vehicle and regain financial control and to make payments properly again.
Debt Collection Harassment
Though bill collectors do not legally have the right to call and hassle you over payments, too often you will receive several threatening calls over the period of a single day concerning past due billing. Bankruptcy can quiet these harassing calls quickly and peacefully.
Each of these areas adds unneeded stress into your life. Making payments can be complicated due to various reasons. Speaking with a bankruptcy attorney can be a way to get you back on financial track and to resolve all of the above issues
Filing for bankruptcy can be a hard decision for most people to make; however, the circumstances surrounding their situation make it impossible for them to see any other way out. There are many reasons that normal trustworthy people, much like you and me, decide that filing for bankruptcy is their only option. These reasons include:
1.Job loss/unemployment - Many people have great paying jobs and rightfully decide to buy their family a nice home, good cars, and send their children to upscale schools. And why not? They have the money to pay for it. Unfortunately, right when some people are in the prime of their financial life, they find themselves suddenly laid off with little more than a severance package if they are lucky. While they are looking for a new job, the large mortgage, large car payment, and the children's monthly tuition is due. To top it off, many of these people will jump into new jobs that pay significantly less than their old one, just to get some of their bills paid. These people have now found themselves in an unforeseen situation that was beyond their control.
2.Medical bills - Sometimes the systems that are supposed to protect us, fail us. Other times, we are victims of unfortunate accidents that require extensive hospital stays and months of physical therapy. Even if we have a medical plan that pays 80% of those bills, we still have a large deductible and the other 20% to worry about. Sometimes these medical costs mount up to more than we have the ability to pay back, while still paying housing costs and buying groceries. This is another example of someone who has found themselves in an unforeseen situation that was beyond their control.
3.Divorce/separation - Not only is divorce costly, but you could also end up owing portions of your spouse's debt even ones that you didn't know about. If your spouse files for bankruptcy or is otherwise uncollectable, their creditors will not hesitate to try and get the money from you especially if the divorce is not yet final. Unemployed spouses may also find themselves taking on debt in order to get a car and a place to live after a sudden separation.
4.Predatory lending practices - Some lenders (usually labeled "subprime") prey on those who cannot get loans from traditional lenders and offer them money that they can definitely use, but will likely have trouble paying back when coupled with the large interest rates and fees that these companies often charge.
These situations catch people off guard and throw them into a circumstance that they cannot handle. All of the sudden they are in over their heads, have creditors harassing them left and right, and need a way to get out of this mess. Bankruptcy can be a practical and respectable solution to help these people get back on their feet.
Both Legal Helpers & Eulalia Allmand are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Legal Helpers has sinced written about articles on various topics from Bankruptcy Law, Bankruptcy Law and Finances. Legal Helpers is a debt relief agency helping people to file for bankruptcy relief under the bankruptcy code. We're one of the largest consumer bankruptcy firms.