So your credit cards are maxed out, you owe several creditors money, bills are piling up and you aren't sure what to do. Bankruptcy is an option you are considering, but you don't know much about filing for personal bankruptcy. It's important you understand the two types of personal bankruptcy that exist.
An individual filing for bankruptcy will file either Chapter 7 or Chapter 13. Chapter 13 involves working out a payment plan with your creditors to pay back the debt you owe. In Chapter 7 bankruptcy, you will sell your property, that is not exempt, to pay back your creditors. After speaking with a bankruptcy attorney, you can decide which type will be the best for your situation.
Chapter 7 bankruptcy is the most common type of personal bankruptcy filed. Almost 68% of all personal bankruptcy filings are Chapter 7. The Chapter 7 process can be wrapped up in under 6 months in most cases after the initial filing. This makes it a good way to put things behind you and start fresh.
If you are in a situation where you can sell some of your property, that which is nonexempt, and pay off your creditors, than Chapter 7 could be an option. You will want to be sure that after you sell your property, you still have enough to start anew. You should consult with an attorney to see if this is the best option for you.
If you have an income coming in or if you make to much to qualify for Chapter 7 bankruptcy, than Chapter 13 may be a fit for you. A Chapter 13 filing will enable you to work with your creditors to repay them. Typically you will restructure the debt you owe and repay it within 3-5 years.
If you need more time to pay off your debt and have an income coming in, Chapter 13 may be a fit for you. Speaking with an attorney will be a good way to go over this option and see if it is a fit.
Now that you have a better understanding of the different types of personal bankruptcy filings out there, the next step is to continue your research. Gather questions and concerns you may have and take the time to speak with a MA bankruptcy attorney about your situation. - 32519
An individual filing for bankruptcy will file either Chapter 7 or Chapter 13. Chapter 13 involves working out a payment plan with your creditors to pay back the debt you owe. In Chapter 7 bankruptcy, you will sell your property, that is not exempt, to pay back your creditors. After speaking with a bankruptcy attorney, you can decide which type will be the best for your situation.
Chapter 7 bankruptcy is the most common type of personal bankruptcy filed. Almost 68% of all personal bankruptcy filings are Chapter 7. The Chapter 7 process can be wrapped up in under 6 months in most cases after the initial filing. This makes it a good way to put things behind you and start fresh.
If you are in a situation where you can sell some of your property, that which is nonexempt, and pay off your creditors, than Chapter 7 could be an option. You will want to be sure that after you sell your property, you still have enough to start anew. You should consult with an attorney to see if this is the best option for you.
If you have an income coming in or if you make to much to qualify for Chapter 7 bankruptcy, than Chapter 13 may be a fit for you. A Chapter 13 filing will enable you to work with your creditors to repay them. Typically you will restructure the debt you owe and repay it within 3-5 years.
If you need more time to pay off your debt and have an income coming in, Chapter 13 may be a fit for you. Speaking with an attorney will be a good way to go over this option and see if it is a fit.
Now that you have a better understanding of the different types of personal bankruptcy filings out there, the next step is to continue your research. Gather questions and concerns you may have and take the time to speak with a MA bankruptcy attorney about your situation. - 32519
About the Author:
When you are considering bankruptcy, educating yourself about the process is important.People often feel nervous when they find themselves in financial situations like these. Get a free bankruptcy review from Matt Desrochers & Associates, MA bankruptcy attorneys. Debt issues are not something to take lightly, but it is not as scary as you might think.
