Learning how to file bankruptcy 101, personal bankruptcys, diy bankruptcy or do you need to find a good bankruptcy attorney!
If you're wondering how to file, there is probably a lot more to it than you think. DIY bankruptcy is one of the options for you if you need relief from your debt, but it definitely should be the last option that you use to get out of debt.
The reason that personal bankruptcies should be your last choice include the expense, the negative affect on your credit score, and all the legal hoops you have to go through. In the end though, it is a way that you can get out of debt if there is no other choice for you.
However, the laws change on a regular basis, and new bankruptcy law can affect you, which is one reason it's a good idea to see a good attorney.
Here is a look at some of the options that come with personal bankruptcys.
First of all, when you are wondering how to file bankruptcy as an individual, you'll find that there are two main chapters available. Usually the most common options are Chapter 7 and Chapter 13.
Here is a look at both of these options you should know about before you try to enter bankruptcy protection.
Chapter 7 - One of the options available to you if you want to know how to file bankruptcy is Chapter 7. This is also known as a Liquidation.
This releases you from most of the debts that you have, but you may have to liquidate any assets that you have. In many cases, most of your assets are exempt, but there may be some debts that are not discharged when you file this type, such as taxes, student loans, and debt that is related to fraud.
Chapter 13 - When it comes to DIY bankruptcy, another option is Chapter 13, which is sometimes called Reorganization.
This will allow you to restructure the debt that you have. You can work out a plan for repayment although it must be approved by the courts. This is an alternative to Chapter 7 and allows you to pay of debts, while only paying part of the debt. In many cases you can be out of debt within 5 years.
Because the laws change all the time and you want to know how to file bankruptcy. A good Attorney can explain the difference between:
For example: A good attorney can explain why the 60th day after your meeting of creditors is first set is the deadline for creditors to file lawsuits to challenge the discharge of a particular debt or your entire discharge.
If no such lawsuits are filed by your creditors, shortly after that 60th day you will receive notification of a discharge of debt if you filed chapter 7. A discharges means that you have no further obligation to repay the discharged debt, and that your creditors can never collect the debt from you.
If you filed chapter 13, you will receive the notice of discharge approximately 30 to 60 days after your final payment has been made and the trustee ensures your payment plan has been followed and completed.
Not all debt is discharged in a chapter 7 or 13, including student loans and certain taxes, so you may not be completely relieved of the obligation to repay all debt.
Whether or not a debt is discharged depends upon certain Code provisions, and with respect to some debts, whether or not a creditor succeeded in convincing a judge that your debt to that creditor should not be discharged.
If you want to know how to file bankruptcy, it's important to know about the fees that you may encounter. Often it can cost about $800 or more. If you are filing as a couple, it can be even higher.
You'll have to get all the paperwork ready for the attorney so he can prepare the documents and you'll need to answer questions and go over bills with the attorney that you hire as well. The filing fees usually will cost you about $200, on top of the legal fees that you have to pay.
With the new bankruptcy law out there today, it's definitely recommended that you find an excellent attorney that is familiar with the laws to help you through the process.
For people who want to know how to file bankruptcy, an attorney can answer questions and help you make sure that you go through this process the correct way to help you eliminate your debt and get back on track financially.
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