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Want To File Bankruptcy





Do you want to file bankruptcy? Well, before you even think about filing for bankruptcy I suggest that you must consider thinking about other alternatives and making bankruptcy your last option. Keep in mind that bankruptcy leaves a bad record on your credit card and it stays with you for a very long time. This can affect your future career in terms of finding new employment and obtaining new credit. If ever you do decide that you have no other choice but to file for bankruptcy, make it in the best light possible.

So what is bankruptcy? It is a legal action that can eliminate the obligation to pay debts. There are exemptions to the debts that can be eliminated. Student loan is an example of a debt that will not be discharged when you file for bankruptcy. There are limitations in filing bankruptcy, not everyone can meet the qualifications to be eligible for bankruptcy. The changes in the bankruptcy law effective last October 2005 even made it tougher for people to file for bankruptcy.

When you want to file bankruptcy, there are only two types you can choose from. It is either chapter 7 or chapter 13. Take note that when you choose which type of bankruptcy you will file, it will not be the case of which type of bankruptcy you want, rather you will file the type of where you meet the qualifications.

You will want to file bankruptcy chapter 7 for the simple reason that it eliminates your obligation to pay for your debts. This can give a great relief from the pressure of having to pay for your debts. This is why it is much harder to file this type of bankruptcy than chapter 13. In order to qualify for a chapter 7 type of bankruptcy, you must take the means test. This test will reveal results that will determine whether you have the means to pay for your debts. Having the means to pay will automatically disapproved you of filing a chapter 7 but will qualify you to file a chapter 13 type of bankruptcy instead.

Chapter 13 is a type of bankruptcy which allows you to propose a plan to your creditors to pay for your debts. The proposal to the creditors is a repayment plan which now is usually provided by a credit counseling agencies. In order to be eligible in this type of bankruptcy, you must prove that you have a steady income that if minus all your expenses, you will still have a sufficient amount that can cover your debt in a period of time that the creditors can agreed upon.

You need to find a way to file bankruptcy that will be at your advantage. The cheapest way I can suggest is to do it half way. Hire a petition preparer and he prepares the paperwork for you. You just pay them a flat fee. This way it will save you money and time. One other thing you can do is learn from someone who did it this way. For more information on how you can file bankruptcy, go visit the link below.



About Author Steve Young :

For more information on how to file bankruptcy, visit http://www.onlinebkassist.com


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Article Added on Tuesday, October 27, 2009
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