Bankruptcy: Learn What Choices You Have To Choose From
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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.
Can I lose everything if I claim bankruptcy? This is probably one of the most common questions asked. The answer to this is as follows: You may file a bankruptcy and keep all of your belongings, which includes your home, car and all your personal items are kept safe. If the balance left is more than what your home is worth, the court will not auction your home, because after the auction there wouldn’t be any funds left to take care of your debts.
If you owe money to a lot of creditors and you do not file for bankruptcy then the court may take pursuit and either take away funds from your paychecks or even subtract wages. This may make you late with important creditors such as car loans and house payments.
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.
The difference between a chapter 7 bankruptcies and a chapter 13 bankruptcy is that in a chapter 7 bankruptcies you do not owe anything to your creditors once you file. Your debt is completely erased yet marked on your credit report. A chapter 13 bankruptcy means that you agree to pay your creditors back so much a month until everything is paid off. Depending on your certain situation and what you look to resolve or the outcome that you want to achieve by filing bankruptcy.
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.
Before you make the final choice to file a chapter 7 or chapter 13 bankruptcy you need to look into all possible options and decide what is best for you.
Dawn Enstruthe writes for Ginko Financial which is a website containing details on ways to consolidate student loans and very cheap business debt financing.
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