Credit/ Debt

By: Kassidee Freeman

Debt and Foreclosure

Debt: Something typically money that is owed or due.

Foreclosure: The process of taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments.

How do you get into Debt?

Debt

  • You can get into debt if you apply for so many credit cards that you can not handle, because credit cards are so easy to get.
  • You can get into debt from paydays loans. Do not use payday loans, you will have a lot to pay off in the long run
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What steps should you take if you're in debt BEFORE filing for bankruptcy?

Before filing for bankruptcy, contact a finical advisor immediately so they can help with any questions you may have or anything. They will help you make the right decision if whether filing for bankruptcy is the last option.
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Who can help you when you're facing debt? What services do they offer?

Credit Counselor: Some provide free education information, and or courses on basic money management.
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How should you handle debt collector?

When handling debt collectors make sure to stay calm, and have a very polite manner. Treat them how you would want to be treated. Also remember the debt collectors are only doing their jobs.
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Chapter 7 & Chapter 13 Bankruptcy

Chapter 7: If you file for Chapter 7 Bankruptcy the government is allowed to take everything you own. So if you don't own a whole bunch of stuff than Chapter 7 Bankruptcy is the best option. (Like if you just owned a car)

Chapter 13: If you file for Chapter 13 Bankruptcy the government allows you to have a longer time to pay off items. If you own a lot of stuff Chapter 13 would be the best option, because you wouldn't want everything you own to be taken from you.

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How long does it take to recover from Bankruptcy, and what troubles are associated with Bankruptcy?

To recover from the damage of bankruptcy can take 7 or more years.

  • If you own a home you can be forced to sell it.
  • Getting a job can become super hard when you have bankruptcy on your file.