Bankruptcy: Find Out What Choices You Have Available
I can appear that every corner we turn the economy and workforce keeps getting weaker and weaker so in order to stop collection calls and creditor letters most people are researching and turning to bankruptcy. There is two kinds of bankruptcies a chapter 7 and chapter 13, are they right for you? Here are some of the two most popular questions that people want answered.
The most popular question asked regarding bankruptcy is: Will everything be lost if I file? Most of the times when you file for bankruptcy you can choose to keep your property which may include the home, personal goods and vehicle. In rare occasions, if your property is worth more than what you owe however they may take it and sell so they can divide it to the people in which you owe.
You may have a chance of losing all your belongings if you choose not to file bankruptcy, as creditors can take court action and attack your bank accounts, deduct from your wages and take your property. As a result, you may be late on rent, mortgage or car payments, making it hard to provide even your every day needs
Can I file alone or does my husband have to file with me as well? If most of the debts are in your name only, your husband may not have to file. Creditors usually cannot hound a spouse who did not file, unless he/she is a co-signor on the account. Then the bankruptcy should not be marked against the spouse’s credit report. The rules do differ, however, from county to county so make sure you check with your lawyer representing you to make sure.
A chapter 7 bankruptcy clears your name from all debts therefore erasing all owed funds, this however does mark your credit for up to 10 years. In a chapter 13 bankruptcy however you agree to still pay the creditor back in payments that are set up by the courts sometime even leaving you with barely enough to eat on. A chapter 13 bankruptcy goes on your credit for up to 13 years.
After you get all the facts together then you will want to consult an attorney and get everything lined up. Most lawyers will charge you in the price range of $750. 00 – $2000. 00 to get everything done. You will need a lawyer to get all the paper work done properly and contact your creditors with all the details.
Filing bankruptcy may not be the correct choice for everyone. There are pros and cons that everyone needs to weigh before making that final decision. What is the correct choice for you?
Dawn Enstruthe writes for website Ginko Financial which has details of how to refinance after a divorce and refinancing bad credit auto loans.
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