Bankruptcy

Bankruptcy and Bankruptcy

Bankruptcy is one of the most socially Accepted mailed as a solution for debt and one of the most difficult decisions for the person to rationalize. It is indeed a tough decision and a person should not take this decision lightly. There are Alternatives to Bankruptcy which will provide an alternative for the person to look into. Bankruptcyattorney

Depending on where the debt started, Chapter 7 and Chapter 13 bankruptcy can both be filed. While both types have their own benefits, the main goal of both types is to help the person to get out of debt as fast as possible without having to give up the assets that they currently have. Before making a decision on which type to file bankruptcy under, the individual needs to evaluate what property the person is willing to risk losing and considering the amount of debt currently owed and the amount of income the person earns per month. The person also needs to look into legal expenses, lawyer fees, and court costs. The actual cost of bankruptcy will vary depending on bankasset protection and state rules. For some reason, attorneys tend to charge more in some states than others. The laws vary from state to state so just because the cost is a bit higher in one state, it does not mean it would be the same in another or vice-versa for all states.

Bankruptcy does have long term negative effects. The person will lose all credit from both credit card companies and banks and this includes leases on properties. The individual will also find themselves having to pay higher insurance premiums as well as higher utility bills. This can cause a very big problem for someone that has just filed bankruptcy because they will still owe lots of debts and the amount of debt is just a lot more since all debt is now owed to lots of different creditors. Because of these long term negative effects, many people just wait for 7-10 years for the negative impact to subside.

Aside from just delaying the negative effects of bankruptcy, people should not rush into filing bankruptcy because of all of the fraudulent companies that are now popping up out of nowhere. Not only are many of these firms scams but they will often cause the individual that is filing bankruptcy a lot of unnecessary stress.

When the person and their attorney decide that they need to file bankruptcy, they will be appointed a court to hear the case. This court usually decides if the individual will have to file Chapter 7 or is in dire financial straits and is eligible for a Chapter 13 bankruptcy to help them pay off their creditors. The Court will usually decide on a Chapter 7 bankruptcy. If the court approves for a Chapter 7 bankruptcy, the person is protected from creditors being able to collect any amounts that they are owed. The Court will set out rules as to who can file for a Chapter 7 bankruptcy and who needs to file a Chapter 13 bankruptcy. Everyone isn’t allowed to file for a Chapter 7 bankruptcy. The Court also protects the individual by not letting any creditors or anyone involved ownerty of any of their property to attempt to collect any amount. The Bankruptcy Court also appoints lawyers to oversee the case and protect the individual’s assets. Many times, a lawyer will try to work out a financial arrangement that is not in the best interest of the individual.