Nobody wants to go bankruptcy. It’s like starting from the beginning and for people deciding to file for bankruptcy, the new start occur with its own choice and actions. If for some reason you are considering bankruptcy, here are some important aspects to assess.
1. There are 2 kinds of Bankruptcy
These 2 types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 allows an individual to end their debt completely. It is applicable for people who have high debt but with low income and who don’t have enough money left from the salary for repayment plan. Chapter 13 allows an individual to repay the debt on a repayment plan for 3-5 years.
2. Bankruptcy is not for time-wasting event
People file for bankruptcy when it is necessary especially related to increase number of bills and reducing the income. According to some statistics, the most common reasons why people file for bankruptcy are the medical bills, job loss and divorce.
Bankruptcy stops any collection attempts by the creditors. If unemployed and experiencing foreclosure, chapter 13 can help save some assets. It also enables to pay debt in a repayment plan for 3-5 years.
3. Properties like home is important
You can keep your properties when filing for bankruptcy. However, regulations differ by state. Also, expense limit and amount of income use as an assessment whether a person is qualified for filing Chapter 7 depends on the location. Filing fees and etc. also vary in a place.
4. You can keep assets
The person doesn’t have to surrender his possessions when filing for bankruptcy. Personal properties such as electronics, household furnishings, clothes and etc. may be able to be kept. It is also depend on the state laws, the type of bankruptcy to file and financial condition. There are cases that a person can keep his assets such as cars and home.
5. You can get a free case evaluation of bankruptcy help
Some bankruptcy firm like bankruptcy petition preparer offer a discount or free programs for a case evaluation on bankruptcy files. Ask about this option. Look for a low cost bankruptcy help that may be able to guide you.
6. You have to go so seminars
Prior to bankruptcy filing, there are instances that a person is required to have a 90-minute class in regards to financial counseling. Before bankruptcy is officially filed, you’ll have another 2-hour session class. This event can be attend via phone or online.
Understanding the factors above can help you create well planned actions. It is important that you assess your financial condition before filing for bankruptcy. In some cases, people need an immediate protection from creditors that they end up filing for bankruptcy. Proper analyzation of financial situation can give you a better option to resolve your current condition.