People have personal reasons for taking on debt, and the situations that make the payments impossible are typically just as unique. When financial hardship leads people to opt for bankruptcy, they must follow certain steps, regardless of the circumstances that brought about the situation. Two of these, according to the Federal Trade Commission, are specific educational courses that must be taken before filing for bankruptcy and before the debt is discharged.
Many people in Fort Lauderdale, Florida, may feel pressure to purchase gifts for friends and family members during the holidays that do not actually fit into their budgets. While some people can manage the larger payments necessary to eliminate the debt during the first part of the year, others may discover that the cost is much higher than they anticipated. For these credit card holders, extra steps may be needed to get back in the black.
If you have chosen to file Chapter 13 bankruptcy in Fort Lauderdale, Florida, you may be aware that your payments are going to a trustee who distributes the funds to your creditors. When circumstances beyond your control make it impossible for you to make those payments, you may qualify to have your debts discharged through Chapter 7 bankruptcy. According to a U.S. Supreme Court ruling, this immediately changes the relationship you had with your court-appointed trustee.