What You Need To Know About Bankruptcy

What You Need To Know About BankruptcyNot everyone who is thinking about filing for bankruptcy knows all that they need to know about it. There are different types of bankruptcy that you can file and there are more options than just that. Here is some information for anyone who is thinking of filing bankruptcy so they can go in with more information and make the best choice for them.

First of all you need to decide what chapter you are going to file. Most individuals who file choose either chapter 7 or chapter 13. These chapters each offer different protections for the debtor. Both of these chapters also have very distinct differences. For these chapters there are various requirements such as income. You should do your research on both chapters. Doing research on both chapters will help you to choose the best chapter for you to file.

When you are filing bankruptcy be prepared for the filing fees. There is some flexibility to these fees however. Chapter 7 bankruptcy’s fee is just a little more than chapter 13’s fees. It is possible to get the fees waived for chapter 7 bankruptcy though. To do this you must be able to show the bankruptcy court that your regular income is no more than 150 percent of what the poverty level is in your state.

Keep in mind that bankruptcy will affect your credit report and your credit score. It will stay with your credit report for about seven years. This is something that you need to keep in mind when deciding whether or not to file for bankruptcy. Ask yourself, are you prepared for this to follow you for that long? It is not that you will not be able to get a loan or credit card after filing, but if you do, expect to have a higher interest rate.

When considering filing for bankruptcy you need to decide if your financial situation is serious enough to file for bankruptcy. Ask yourself some questions such as: Have I been making late payments on a regular basis? Am I able to make my payments? Is there another option for me? You should write these questions down so that you are able to write down your answers with them so you can review them whenever needed.

Bankruptcy is a serious decision. This is not the right option for everyone, but for those that need it, it provides help that they desperately need. Do your homework prior to making any decisions. Gather all the information that you possibly can. The more you know the better your decision will be. Having information is the key to making good financial decisions. If you do this and are still confused, talk to a financial advisor. They have so much information that they can share with you. They will answer any questions that you have and help you make the best decision for you.

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