What Are Some Ways To File For Bankruptcy?
Bankruptcies can be done by hiring an attorney specializing in this area of law or can be filed by the individual without using an attorney. Bankruptcies also be filed online, which is more inexpensive and faster than filing in the traditional method.
Hiring a bankruptcy attorney provides an advantage because these individuals possess a thorough understanding of bankruptcy laws.
There are different types of bankruptcies, the correct type to file varies based on if debt will be repaid over a period of time or immediately discharge of debts. There are different types of bankruptcies for individuals, farmers, municipalities, or large corporations to file.
What are some ways to file for bankruptcy? For chapter 7, debts such as loans, real estate, credit cards, vehicles, and boats, etc. can be included. It is not necessary to include homes and cars if the individual can maintain monthly payments and insurance on them. If these debts can be sold, the court trustee will take the monetary value and pay toward debts.
If there are not any assets that can be liquidated, the individual is responsible for a small percentage of repayment toward their debts. (according to the new bankruptcy law). Generally, it takes a chapter 7 bankruptcy approximately six month to become discharged.
A chapter 13, works in a different manner because it is done on a monthly repayment plan. Depending on the amount of debt included in a chapter 13, sometimes the monthly repayment is high and an individual cannot afford it. Chapter 13, repayments is usually set up for completion within a three to five year timeframe. Therefore, it is not uncommon that someone converts from a chapter 13 to chapter 7.
Regardless of the filing method an individual chooses, they will need to include all of their debt, excluding child support, taxes, and student loans. The best way to ensure all debt is included is to request a copy of the individual’s credit report from the three credit bureaus. If an attorney is used, they will pull a credit report and verify all debts owed are listed on the credit report and contact each creditor to make sure the amounts listed are correct.
Bankruptcy should be used as a last resort; but if it is a needed end there are the ways to that it can be done.Perhaps you could try a debt consolidation company before having to declare bankruptcy.
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