Posted by: Thomas Gillick
Almost all people have some form of debt including loans, credit card debt, and mortgages. While some people have no problem paying back this debt some people have trouble paying off their debts while their debt gets worse and worse. For these people there are options to help them out. The most extreme of these options is filing for bankruptcy. There is a few things you should be aware of before actually filing for bankruptcy. Bankruptcy is way to help creditors relieve their debt although your assets may be at risk. The two most commonly known types of bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Under Chapter 7 you’re discharged from your debt within 90 days and brings you back to zero. Chapter 13 allows for protection of your assets. This is a longer process, which is usually 3-5 years. Under this a piece of your disposable income goes towards your debt. Both of these seem pretty good but of course bankruptcy should only be filed when absolutely necessary. Filing for bankruptcy can do damage to your credit rating. It is more often then not a better idea to talk to a lawyer to see if there a possibly ways to repay your debt before filing for either of these bankruptcies.
Sources:
http://www.osbar.org/public/pamphlets/bankruptcy.html
http://www.1clickbankruptcy.com/why_choose_us.htm
http://www.nwls.org/Bankruptcy.htm
No comments:
Post a Comment