Is Bankruptcy Your Answer?

Before choosing to file bankruptcy you need to check all of your other available options. Make sure you take the time out to research all of the aspects concerning bankruptcy before you take that step. It may be right for you or not. It is something that many people have had to do in order to get their financial stability back in order.



If you can not pay your bills any longer, then sometimes you just have to decide on the possibilities of having to file for bankruptcy. In the United States there are a couple of different types of bankruptcy that you have the option of filing. One of those is Chapter 7 and the other is Chapter 13.



In many cases people go with the option of choosing Chapter 7 when filing for bankruptcy. The reason so many choose this option is because it will allow you to liquidate all of your non exempt assets and by doing so, you will be able to sell them and disburse that income to pay off all of your debts or most of them. By choosing to file a Chapter 7 you will be allowing yourself the ability to possibly get one step closer towards financial relief.



Some however choose to file for a Chapter 13. When doing so this kind would allow you to get court approved arrangements made to the creditors and have them basically figure out all of your bills for you and then they begin the processes of setting up some kind of payment arrangements in order for you to pay off some of them at a slightly slower pace, possibly allowing you up to 5 years to get them all taken care of. With Chapter 13 you will also not have to worry about them being able to take any of your property, which is really a blessing. This will relieve you of many of those constant phone calls by bill collectors that you try avoiding and you will also be able to sleep a little better at night in knowing that you still have your car, your home and other belongings because of choosing this type of bankruptcy. In some instances you may not have a choice as to which kind of bankruptcy you will be filing. They may look at your monthly income and determine that you have to file a Chapter 7 even though you had planned on filing a Chapter 13. If your income is too much this would be the case.



Bankruptcy is never a pleasant experience, either way you look at it. It is not something that any of us anticipate ever having to do but sometimes due to unexpected bills that may accumulate, you may be stuck in a situation as to where you have no other options at all, and if that were the case you may not have any other choice but to file for bankruptcy. The bankruptcy laws have changed quite a bit throughout the years so be sure you are updated on any of those changes before making any kinds of decisions in regards to any possibilities of having to file for bankruptcy.