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 first most popular question asked is: If I choose bankruptcy what happens to my stuff? Most of us hear horror stories about the law coming and throwing us out on the street if we file for bankruptcy. This is not true. Majority of the time when you choose to file you have the option of keeping your personal property. The court will not come in and sell your stuff if it doesn’t value it at more than what you owe. If this is the case then the court may take your belongings and auction it so they can pay your debts off.
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
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.
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 reaching your options you need to consult with a lawyer or attorney so he can then look at your past history as well as debt to income ratio and give you his or her advice on what you should do in the current situation. Generally there is a minimal charge for his or her fees in the price range of a thousand dollars but having a lawyer can be beneficial by having all the paper work taken care of as well as stop harassing creditors call.
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 refinance business debt.