Bankruptcy: Learn What Choices You Have To Choose From
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.
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 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.
The second question is: Will my husband or wife need to file bankruptcy when I do? If your debts are alone in your name then chances are your husband or wife won’t have to file with you. There are a few instances where creditors can come after your spouse if he/she is a co-signor on the account. This is a question however to address with a lawyer because this is different from state to state.
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.
The last thing that you will need to do is talk to a lawyer about your situation and has him or her give you the best advice for the situation you are in. On average a reasonable lawyer will charge you between $700 dollars and a few thousand dollars. You will need a lawyer to get all the paper work done properly and correctly. You can file for bankruptcy yourself but it is better and advisable to have a lawyer do it for you because generally creditors will stop contacting you once a lawyer is involved.
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 low Chicago mortage refinance rates.