Why Personal Bankruptcy Is The Wrong Thing For Some

Filing for bankruptcy is always a hard thing to do. When you start the procedures to file for bankruptcy, you start thinking about all of the wrong things that you did. If you have not filed yet, there is still time to make things right, look through this article and figure out what you can do.

If you are being faced with home foreclosure, wage garnishments or other situations that make it necessary to file for bankruptcy quickly, you may want to explore an emergency filing. Regular bankruptcy filings entail approximately 50 pages of paperwork and one to two weeks for an attorney to pull everything together. In an emergency filing, your attorney can file just the first 2 necessary pages and keep creditors from continuing foreclosure or garnishment proceedings. The rest of the work will be completed afterward.

Familiarize yourself with any new law before you make the final step to filing for bankruptcy. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. Your state’s website should have the information that you need.

Make certain that you comprehend the differences between Chapters 7 and 13. Every one of your debts will be gone if you decide to go with Chapter 7. Any ties you have concerning creditors will definitely be dissolved. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. You need to determine which type of bankruptcy is right for you given your unique financial situation.

Research Chapter 13 bankruptcy, and see if it might be right for you. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Just know that missing one payment could cause your case to be dismissed.

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