How to enter personal bankruptcy protection, learn how to file bankruptcy with an attorney or use a diy bankruptcy kit.
The first step of filing requires you to determine which chapter is best suited for your needs.
Six chapters exist and include:
If you decide to enter bankruptcy protection, you should not make the decision lightly. It is a very serious move that will affect you for a minimum of ten years. Many people crumble under their debt.
They feel crushed and they panic, reaching for the quickest and most effective cure and filing seems to fill that bill for them. But the outward appearance of filing is deceptive.
Bankruptcy is very serious and once done, it will be with you for years. Only enter bankruptcy protection if there is absolutely no other way to get out of your debt, because filing chapter 7 or chapter 13 could make your debt problems worse instead of better and you could lose everything.
Before you enter bankruptcy protection or start a diy bankruptcy program look at the other alternatives. Check out debt settlement vs bankruptcy, free debt consolidators and debt negotiation technique. See if any of those programs can help you pay down your debt.
These type of programs are run by financial experts whose job it is to work with creditors and get them to reduce payments, lower interest and make your payments more manageable.
Debt consolidators will combine all of your debt so that you make one monthly payment instead of many. It is worth a shot to at least try one of these options before plunging into the murky Chapter 7 and 13 waters.
If you still find that your debt is out of control and the only answer is to enter bankruptcy protection, try filing Chapter 13. It is a milder form, and less stringent than filing for Chapter 7. It is on your credit report for fewer years than Chapter 7 as well.
It does require repayment of all the debt or at least most of it. But in the end it is often preferable because the negative effects are not as long lasting and you may be able to keep some possessions such as your home.
When you enter bankruptcy protection, it is a smart move to hire an attorney. They will help you list your assets as well as your debts and you will need to provide them with proof of these things when needed as well as your proof of income and bank statements.
For bankruptcy protection, your tax returns over the past several years will usually be needed as well. It will help for you to make our own list of debts, keeping in mind that child support payments, alimony payments, student loans, most taxes and court fines can not be restructured under the new bankruptcy law.
You will be required to attend credit counseling when you file. You will also be required to meet with your creditors. If you file under Chapter 13, you must make sure that you pay all of your payments on time. This will ensure that you preserve your assets.
While the time frame may vary depending on several factors, you can expect your repayment play to span at least two or three years. Mortgages are generally longer.
The decision to enter personal bankruptcy protection should not be a hasty or poorly thought through one. It is not a quick, easy fix as it may at first appear. Take your time, think things through and explore avenues so you can avoid potential regrets.Return from Personal Bankruptcy Protection to Bankruptcy Facts
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