How Do I File a Bankruptcy?

Filing for bankruptcy in the United States should be a last resort option for anyone that is debt. There are a countless number of reasons why one can get into debt. Sometimes unforeseen circumstances make it so that it is nearly impossible for one to repay their debt. These reasons can include a divorce, or having substantial medical bills.

It is important that prior to filing for bankruptcy that you have no other options left. This is because filing will not leave your credit report for 10 years. This makes it so you cannot get any other credit for several years. So, if you are able to keep your car and house loan, keep in mind that it may be all you are able to get for several years.

It is wise to go over your options with a lawyer. They can let you know what your options are and if you should file Chapter 7 or Chapter 13. A lawyer will charge you fees in order to file, which includes their fees and the standard bankruptcy fees. Keep in mind that most people that need to file bankruptcy do not have very much disposable income, and that the standard fees are going to be more than 1000 dollars. There are different services that are available for people that do not have the means to pay their fees, which can be a real advantageous thing to look into.

An important step to take if you're thinking about filing for bankruptcy is to not use any of your credit cars. This shows that you are not abusing your credit and that you're capable of controlling your spending. There is typically some substantial research done regarding your credit and your means to pay it back. There are some distinct advantages to using a lawyer in order to help you file. One of the ways this can help is that if you're being harassed by creditors that you can refer them to your lawyer and make things a lot easier while the paperwork is going through.

A Chapter 7 is a straight liquidation whereas a Chapter 13 is a repayment plan. If you do not meet the means test you will be forced to file a 13. This is because standards have been raised for filing a liquidation to ensure that individuals do not abuse the bankruptcy system.

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