Filing for a chapter 7 or chapter 13 bankruptcies is becoming more popular today than it was a few years back. It seems as if every day someone else is getting laid off of jobs and can't find work so therefore filing for bankruptcy seems like the best choice. Before filing for either bankruptcy you need to weigh up all options and see if it is a good choice for you or not.
The most popular question asked regarding bankruptcy is: Will everything be lost if I file? Most of the times when you file for bankruptcy you can choose to keep your property which may include the home, personal goods and vehicle. In rare occasions, if your property is worth more than what you owe however they may take it and sell so they can divide it to the people in which you owe.
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.
The second question is: Will my husband or wife need to file bankruptcy when I do? If your debts are alone in your name then chances are your husband or wife won't have to file with you. There are a few instances where creditors can come after your spouse if he/she is a co-signor on the account. This is a question however to address with a lawyer because this is different from state to state.
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 you get all the facts together then you will want to consult an attorney and get everything lined up. Most lawyers will charge you in the price range of $750. 00 - $2000. 00 to get everything done. You will need a lawyer to get all the paper work done properly and contact your creditors with all the details.
Filing bankruptcy may not be the correct choice for everyone. There are pros and cons that everyone needs to weigh before making that final decision. What is the correct choice for you?
About the Author:
Dawn Enstruthe writes for website Ginko Financial which has details of consumer credit counselling Chicagolandland and home refinance after a bankruptsy.
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