Bankruptcy Basics

How Can Bankruptcy Help You?

If you are struggling with any type of debt and are unsure that you will ever be able to pay it back then you may need to consider filing bankruptcy to get back on your feet financially. There are various types of bankruptcy that will benefit some more than others depending on the exact situation. It is important to discuss your situation with a bankruptcy attorney so that they can advise you about which Chapter would be best for you to file. Bankruptcy-Solutions.net can help you find a bankruptcy lawyer in your area so that you can meet with them in person to discuss the process further. Filing bankruptcy can help you achieve the financial freedom that you have been longing for.

Help with Bankruptcy Basics

Many people go into the bankruptcy process knowing very little about what to expect. Here at Bankruptcy-Solutions.net we don’t want that to be you. Here are some simple bankruptcy basics to understand before starting the process:

  1.  Two Types of Personal Bankruptcy – Unless you are filing bankwruptcy for your business then it is highly likely that a bankruptcy attorney will present the two types of personal bankruptcy to you. They are: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy quickly wipes away most types of unsecured debt such as credit cards, medical bills, payday and/or personal loans. This type of personal bankruptcy helps individuals or couples that have high amounts of unsecured debt and a below average income. On the other hand, a Chapter 13 bankruptcy involves a 3-5 year repayment plan where the debtor pays a monthly payment to the bankruptcy court that goes towards paying back a portion of their overall debt. Chapter 13 bankruptcy helps those who may have large amounts of secured debt and an above average income.
  2. Keeping your home and vehicle during bankruptcy – Many people worry that filing bankruptcy will cause them to lose ownership of their home or vehicle. This is simply not true. The basic rule to remember is that if you want to keep it, stay current. In most cases your mortgage and/or car company will not worry that you are filing bankruptcy as long as you are staying current on your payments.
  3. Dischargeable debt – The debt that bankruptcy can erase is known as dischargeable debt. This can include items like credit cards, medical bills, personal loans, payday loans, and even old utility bills. There are certain types of debt, however, that cannot be erased through bankruptcy. These are called non-dischargeable debt and include: student loans, child support, alimony or anything owed to the government like back taxes, parking tickets or even library fines.
  4. Bankruptcy court date – Anyone who files bankruptcy must appear in court for a brief meeting in front of a bankruptcy judge known as a trustee. Don’t let this worry you. A bankruptcy court appearance is nothing like you see on television; there will be no jury or harsh questioning. In fact, you will most likely only be speaking with the trustee for 8-10 minutes. The appearance is ultimately to make sure that your bankruptcy does not involve anything fraudulent.

Help with Filing Bankruptcy

Filing bankruptcy can be tricky. It is, after all, a legal process that involves certain paperwork filed in a certain office at a certain time. Having a bankruptcy attorney is extremely beneficial. It will allow you, the debtor, to be free of any worry that you could be doing something wrong. The attorney will take care of making sure forms get filled out accurately and turned in on time. Bankruptcy-Solutions.net can connect you with an attorney in your area of the country so that you can discuss your situation with them and hear more specific bankruptcy options. Fill out our free online application or call our toll free number today!