Filing For Bankruptcy: Is There Another Way?
Bankruptcy can be looked at from various perspectives, but the common belief is that by filing for bankruptcy, you will have your debts taken care of and after the process is finished your life will be back to normal and you can relax. This perception can make most people to get careless about filing for bankruptcy and from their perspective it is adopted a way of life. But then, lots of people are much more reluctant to go down the bankruptcy road in fear of what other people will think of them.
The fact is that there are no guarantees that once you have filed for bankruptcy your life will be entirely free of debt. There are many types of debt such as student loans, child support, unauthorized debts, major purchases of luxury items over five hundred and fifty dollars, and maintenance payments that you will not be able to do away with with any ease, if at all. Do not suppose that by filing for bankruptcy these debts will simply disappear.
In addition, still another decision you need to make if you are to file for bankruptcy is whether you can file for Chapter 7 or Chapter 13 bankruptcy. The first option is probably your best bet if you hope for complete elimination of your debts. Nevertheless, it is not automatically possible to file for Chapter 7 bankruptcy unless federal bankruptcy laws show that you have the eligibility to file for this type of bankruptcy.
Another option you may want to consider is Chapter 13 bankruptcy. This differs from Chapter 7 bankruptcy from the aspect that it will assist you with rearranging your debts instead of eliminating them. The benefit to this is that Chapter 13 bankruptcy helps make sure that your monthly payments are decreased, which puts you in a significantly better position to pay back your debts and rediscover financial stability.
It is normal when filing for bankruptcy under Chapter 13 that the process will take about three to five years to eliminate all of your debts completely.
And still, there are a lot of steps that make up Chapter 13 bankruptcy before the procedure is complete. You are allowed to retain certain assets and in point of fact these assets will be protected under the regulations that regulate Chapter 13 bankruptcy. However, similar to Chapter 7 bankruptcy, you need to meet various prerequisites before you are eligible to file for Chapter 13 bankruptcy.
Something thing to keep in mind is that the option of which chapter you file is not your choice, but is the court's determination. This is a significant reason that you may want to get the assistance of a bankruptcy lawyer who can show your financial position in a light that will permit you to file for the preferred chapter.
You must remember that before you file for any chapter of bankruptcy, it is advisable to consider each alternative available to you. You could be a candidate for debt consolidation which will decrease your monthly cash outflow and help you to get your finances back together. Do not merely opt for bankruptcy as it seems like the easiest solution to your position. Filing for bankruptcy is a significant measure and should only ever be used as the last resort, and only after you have examined all other options.
The fact is that there are no guarantees that once you have filed for bankruptcy your life will be entirely free of debt. There are many types of debt such as student loans, child support, unauthorized debts, major purchases of luxury items over five hundred and fifty dollars, and maintenance payments that you will not be able to do away with with any ease, if at all. Do not suppose that by filing for bankruptcy these debts will simply disappear.
In addition, still another decision you need to make if you are to file for bankruptcy is whether you can file for Chapter 7 or Chapter 13 bankruptcy. The first option is probably your best bet if you hope for complete elimination of your debts. Nevertheless, it is not automatically possible to file for Chapter 7 bankruptcy unless federal bankruptcy laws show that you have the eligibility to file for this type of bankruptcy.
Another option you may want to consider is Chapter 13 bankruptcy. This differs from Chapter 7 bankruptcy from the aspect that it will assist you with rearranging your debts instead of eliminating them. The benefit to this is that Chapter 13 bankruptcy helps make sure that your monthly payments are decreased, which puts you in a significantly better position to pay back your debts and rediscover financial stability.
It is normal when filing for bankruptcy under Chapter 13 that the process will take about three to five years to eliminate all of your debts completely.
And still, there are a lot of steps that make up Chapter 13 bankruptcy before the procedure is complete. You are allowed to retain certain assets and in point of fact these assets will be protected under the regulations that regulate Chapter 13 bankruptcy. However, similar to Chapter 7 bankruptcy, you need to meet various prerequisites before you are eligible to file for Chapter 13 bankruptcy.
Something thing to keep in mind is that the option of which chapter you file is not your choice, but is the court's determination. This is a significant reason that you may want to get the assistance of a bankruptcy lawyer who can show your financial position in a light that will permit you to file for the preferred chapter.
You must remember that before you file for any chapter of bankruptcy, it is advisable to consider each alternative available to you. You could be a candidate for debt consolidation which will decrease your monthly cash outflow and help you to get your finances back together. Do not merely opt for bankruptcy as it seems like the easiest solution to your position. Filing for bankruptcy is a significant measure and should only ever be used as the last resort, and only after you have examined all other options.