Talking About Bankruptcy Services

Talking About Bankruptcy Services

Considering Bankruptcy? You Should Know The Answers To These Questions

by Carlos Gomez

Are you considering bankruptcy because you are overwhelmed with the amount of debt that you have? Before you decide to move forward with bankruptcy, you should know the answer to these common questions. 

What Are The Most Common Forms Of Bankruptcy?

There are several forms of bankruptcy available to use, but some are geared toward individuals and others are for businesses. If you are filing as an individual, you'll likely be using Chapter 7 or Chapter 13 bankruptcy. The difference between these two are mainly how much of the debt is discharged and how it impacts your credit.

Chapter 7 is going to discharge more debts than Chapter 13, but the former also will stay on your credit report for a longer period of time. Chapter 13 involves creating a repayment plan that is designed to work within your budget.

Will Your Creditors Stop Harassing You? 

A nice benefit of using bankruptcy is that your creditors are not allowed to contact you during the bankruptcy process. They can't ask for you to pay back your money or contact you in any way. This includes pausing the foreclosure of a home or the repossession of a car. The legal term for this process is an automatic stay, and it will be granted for the length of the bankruptcy until it is approved or denied. 

Will You Have To Sell All Your Assets?

Bankruptcy allows you to hold onto some of your assets, which is done in the form of exemptions. You will likely be able to hold onto a vehicle, retirement account, household goods, and things of that nature that are not secured by a debt. However, in some states, you are only given an exemption for a certain amount of the value of your home. You may be required to sell your home, and then use the equity that you've built up to pay off your debts. You'll then retain a specific amount of the home's value based on your exemptions, which you can use toward buying or renting your next home. 

Can All Debts Be Discharged?

One thing to be aware of in bankruptcy is that you won't be able to discharge all of your debts. Some common debts include student loans, court judgments, child support, spousal support, and back taxes. You will be able to discharge credit card debts, medical bills, and other unsecured debts that you owe to a creditor. 

For more information, contact a bankruptcy lawyer.


About Me

Talking About Bankruptcy Services

Hi there, I am Shirley Lorenzo. Without adequate car insurance, every accident has the risk of leading to bankruptcy. Car accident damage caused by an under-insured individual can result in the inability to even own a vehicle until it's paid. Thankfully, bankruptcy attorneys can help discharge those debts and restore finances to a positive status. Bankruptcy requires the use of an attorney to navigate the complicated set of laws governing the process. I will use this site to talk about the paperwork, procedures and meetings required while pursuing bankruptcy. I will also share my knowledge about common bankruptcy court procedures used to discharge debts. Thanks for visiting my site.