The way the economy is today more and more people are looking into filing for bankruptcy. There are two kinds of bankruptcy and before you file you need to research both so you know which one is best for you and suits your situation best that you are in. There are several questions that you must ask yourself before filing here are a few?
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.
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.
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.
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 is a writer for Ginko Financial which has info on ways to become a certified fiancial planner and low Chicago mortage refinance rates.
