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Bankruptcy: Find Out What Options You Have To Choose From
I can appear that every corner we turn the economy and workforce keeps getting weaker and weaker so in order to stop collection calls and creditor letters most people are researching and turning to bankruptcy. There is two kinds of bankruptcies a chapter 7 and chapter 13, are they right for you? Here are some of the two most popular questions that people want answered.
The most popular question asked regarding bankruptcy is: Will everything be lost if I file? Most of the times when you file for bankruptcy you can choose to keep your property which may include the home, personal goods and vehicle. In rare occasions, if your property is worth more than what you owe however they may take it and sell so they can divide it to the people in which you owe.
If you have multiple debts then chances are if you choose not to file bankruptcy then you may lose your belongings because creditors can take money from your paychecks, and bank accounts which may make you miss house and vehicle payments.
The second question is: Will my husband or wife need to file bankruptcy when I do? If your debts are alone in your name then chances are your husband or wife won't have to file with you. There are a few instances where creditors can come after your spouse if he/she is a co-signor on the account. This is a question however to address with a lawyer because this is different from state to state.
A chapter 7 bankruptcy clears your name from all debts therefore erasing all owed funds, this however does mark your credit for up to 10 years. In a chapter 13 bankruptcy however you agree to still pay the creditor back in payments that are set up by the courts sometime even leaving you with barely enough to eat on. A chapter 13 bankruptcy goes on your credit for up to 13 years.
The last thing that you will need to do is talk to a lawyer about your situation and has him or her give you the best advice for the situation you are in. On average a reasonable lawyer will charge you between $700 dollars and a few thousand dollars. You will need a lawyer to get all the paper work done properly and correctly. You can file for bankruptcy yourself but it is better and advisable to have a lawyer do it for you because generally creditors will stop contacting you once a lawyer is involved.
Before you make the final choice to file a chapter 7 or chapter 13 bankruptcy you need to look into all possible options and decide what is best for you.
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