Does Bankruptcy Work?
Of course, bankruptcy is your last resort. It is tough but provides a legal remedy for your financial situation.
Bankruptcy is a 3-step process:
You must first file in federal or state court saying you are insolvent meaning you have no cash or assets (things you can sell) to pay your bills.
You have to arrange a repayment plan with creditors and the court.
You discharge meaning settle your debts with creditors for usually a lower amount than the original bill. This gives the creditors some of their money back.
Types of Bankruptcy
Chapter 7 straight bankruptcy
This is when you sell everything and pay back creditors. You can keep your house, but must pay taxes, alimony, fines, and student loans.
This allows you to keep your stuff, but the court appoints a trustee to help you with your wages and pay back your creditors usually within a 3 to 5 year window.
What if I dont file bankruptcy what could happen?
Hopefully, this information has helped your situation, but please, it is always smart and sometimes required by law, to consult with an attorney before filing.
About The Author
Stuart Simpson collects information and tries to find ways for people to stave off bankruptcy at http://www.bankruptcychapter7.com/
Reprinted from ArticleCity.com
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