Financial problems can plague anyone at any time. When the unexpected happens and your income changes, you may no longer be able to support the expenses that you currently have. When that happens and those financial expectations become unattainable, you might want to consider filing for bankruptcy. However, if you are like many people, you might be hesitant. Here's a look at what you need to know about bankruptcy to help you determine if it's the right choice for you.
Are you planning to file for bankruptcy? If so, managing your debt and assets before you even begin is important for the success of your claim. Here are a few do's and don'ts involving your money in the weeks and even months before filing with the court. Do Buy What You Need Bankruptcy court will go over your financial transactions leading up to your filing date to look for prohibited actions.
One of the more challenging obstacles for folks to try to overcome in bankruptcy is dealing with secured debt. For most debtors, secured debts mostly refer to mortgages and car loans, although they can include almost any loan that's backed by collateral. If you're trying to figure out how to hold onto such items while also restructuring your debts, pursuing a Chapter 13 bankruptcy will probably be your best option. Let's take a look at how this might be accomplished under the Chapter 13 bankruptcy law.
When you declare that you are unable to pay your debts, you are declaring bankruptcy. This word has a negative connotation but for millions of filers, this act provides an opportunity for a fresh start. Declaring Chapter 7 bankruptcy also places your personal financial situation in the hands of the bankruptcy trustee who oversees your case. This means that some of your personal belongings could be subject to seizure. This scary issue should serve as a point of education only because most consumer filers don't lose their property.
Bankruptcy is something many people turn to when they are experiencing major financial problems with debt, and many people find that Chapter 7 seems to be the more favorable choice when compared to Chapter 13. While there are times when Chapter 13 is a more advantageous option for some people, here are the top three reasons many people prefer Chapter 7 over Chapter 13. It is faster One key difference between Chapter 7 and Chapter 13 is the amount of time it takes from the point in which you file the documents until the point where the court discharges the case.