Filing for bankruptcy can be stigmatizing. Some people fear taking this desperate step to mean they’re financially irresponsible. That’s quite inaccurate, seeing that most bankruptcy cases are due to medical bills, according to RetireGuide.com.
Other causes include a divorce or a job loss; life can surely serve misfortunes. If you’re concerned that filing will leave you destitute because you have to give up most of your property, there are bankruptcy exemptions to protect some of your equity from being used to pay off debts. If filing makes sense financially for you right now, go for it.
But you need first to understand the different types of bankruptcy to make an informed decision. You need to know what to avoid before you file, like fraudulent transfers that can have your cases dismissed and get you banned from filing for some time. You should also be well acquainted with your bankruptcy budget worksheet, and if you’re asking yourself, can I file bankruptcy on a personal loan? Studying a bankruptcy information sheet and getting one of the bankruptcy lawyers early enough will help you understand what you need to do.
Check your state’s bar association for a lawyer with an impressive success rate. An experienced lawyer can effectively argue to waive some of your fees and show you how to file bankruptcy if you have no money. Information is empowering. It’ll give you the confidence to take the next step.
In the year 2013, approximately two million people in the United States filed for bankruptcy due to unpaid medical bills alone. Of all the United States bankruptcies filed in 2013, 333,626 were Chapter 13 bankruptcies. Chapter 13 is not the only type of bankruptcy, of course. One of the more common types is Chapter 7 bankruptcy.
The main difference between Chapter 7 and 13 is what happens to the person filing for bankruptcy. When filing for a Chapter 7 bankruptcy, the debtor’s property is sold, and the proceeds given to the creditors. In a Chapter 13 bankruptcy, the debts are adjusted, so that the debtor can keep his property and pay back the creditors over an agreed-upon period of time. To file for either type of bankruptcy, a petition must be submitted to the bankruptcy court. For a Chapter 13 bankruptcy, this petition must be filed with the court that serves the area where the debtor has a residence. For a Chapter 7 bankruptcy, the petition may be filed with the court that serves the area where the individual debtor has a residence, or where the business debtor has a principle place of business.
Chapter 7 bankruptcy exempt property (or, property that is not liquidated) depends on the laws where the debtor lives. To file a Chapter 7 bankruptcy currently costs $306, but a knowledgeable Chapter 7 bankruptcy attorney may be able to get your fee waived. In addition, an attorney can help with filing bankruptcy, so that any errors in the filing will be caught before the case goes to court, which can prevent the case from being thrown out. Usually, an attorney can end harassment by creditors, and help a person decide which type of bankruptcy (if any) is right for them.