Clean Up Your Debts Through Bankruptcy
Bankruptcy is a legal process that permits the debtors who are unable to cope up their debts to develop a payment plan over a period of time and ensures fair distribution of debtor’s assets between creditors. We could not deny the fact that bankruptcy has its negative implications. Filing for bankruptcy requires a lot of process and forms to be filled up that could really be intimidating. Expect loss of your properties, credit cards and investments. Considering these negative consequences, it could really make you feel like it’s the end of the world but put in mind that your life doesn’t end here. In this kind of situation, it would be best to consult a bankruptcy attorney to further enlighten you. Look for an experienced bankruptcy attorney with highest ethics and has a successful record.
In United States, the two common ways to file a bankruptcy are chapter 7 and chapter 13. Chapter 7 also known as the “Straight Bankruptcy” involves a trustee who will handle the distribution of the debtor’s non-exempt property to the creditors in accordance with the Bankruptcy Code. Debtors filing for chapter 7 are usually released from personal liability after three to four months. Chapter 13 bankruptcy also called as the “Reorganization Bankruptcy” allows the debtor to keep non exempt property and appeal a payment plan for three to five years. Chapter 13 is suitable for debtors who have a sufficient and regular source of income.
Despite of the negative consequences of filing bankruptcy, it actually offers a great help when your debt situation is at its worst state. It can eliminate unsecured debts such as credit card balance, unsecured personal loans, medical bills and any kind of debts where the creditor does not have security interest on your property. Filing for Bankruptcy would also halt creditor harassment such as non stop letters and phone calls.
Making decisions for filing bankruptcy is not that easy and it could even lead you to emotional stress and frustration. It would be better to get as much information about it to have a wide range and complete understanding of the situation. Bankruptcy Law’s main objective is to give the debtor a chance to start over and enjoy a debt free life. If you are still uncertain and still having questions running through you mind, consult a bankruptcy attorney to guide and give you options on the right thing to do.