Filing for bankruptcy will be a very crucial decision, so don’t take it lightly. Doing your research, partially by reading articles like this one, is an important first step in filing for bankruptcy. Doing as much research as possible is important.
Find out as much as you can about the individual laws in your state. There is a lot of information about there, but every state has its particular laws that people are subject to. You may have a lawyer, but it is important that you know about this as well so you can make better decisions.
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. Chapter 7 is the best option to erase your debts for good. Any ties that you have with creditors will be dissolved. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Think carefully before filing Chapter 7 bankruptcy. While Chapter 7 bankruptcy (irreversible insolvency) will effectively get rid of all your debts, allowing you to start afresh, it will also be on your credit report for 10 years. This will greatly reduce your chances of getting any type of credit in the future. Consult with a bankruptcy attorney – he or she may be able to suggest a different form of debt relief that won’t have such a damaging effect on your credit.
Bankruptcy isn’t simple and immediate. You must do a wide variety of things correctly. When you implement the suggestions in this article, you can feel confident that you have covered all the bases with regard to bankruptcy filing.