Bankruptcy: Discover What Options You Have To Choose From

Filing for a chapter 7 or chapter 13 bankruptcies is becoming more popular today than it was a few years back. It seems as if every day someone else is getting laid off of jobs and can’t find work so therefore filing for bankruptcy seems like the best choice. Before filing for either bankruptcy you need to weigh up all options and see if it is a good choice for you or not.

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.

If you have multiple debts then chances are if you choose not to file bankruptcy then you may lose your belongings because creditors can take money from your paychecks, and bank accounts which may make you miss house and vehicle payments.

Does my husband or wife have to claim with me? The answer is no. In most standard cases unless your spouse is on the account then they will not have to file and they will be able to keep their credit in good standing. This does however change from each county and state so you need to check with the courts or a lawyer.

There are two kinds of bankruptcies one is a chapter 13 which means that you and your creditor mutually agree for you to pay them back in monthly payments until your debt is settled with them. A chapter 7 bankruptcy is normally a total bankruptcy which means that you are wiping all slates clean and trying to start over. Both bankruptcies put a mark on your credit which lasts either 10 years or 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.

Look at all the possible aspects of filing before you sign your name. Filing bankruptcy is not for everyone. You may find an alternative option instead of filing.

Dawn Enstruthe is a writer for Ginko Financial which has info on become a certified fiancial planner and lowest Chicagoland mortgage refinanse rates.