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.
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
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.
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 Ginko Financial which is a website containing details on consolidating student laons and inexpensive business debt financing.