Bankruptcy may be considered from many angles, but the popular belief is that by the procedure of filing for bankruptcy, you will have your financial obligations eliminated and once the process is complete your life will be back to normal and you can relax. This assumption can make most consumers to get lax about filing for bankruptcy and in their view it is adopted a way of life. Then again, a lot of people are much more hesitant to go down the bankruptcy road for fear of what other people will think of them.
The truth is that there are no guarantees that after you have filed for bankruptcy your situation will be totally debt free. There are umpteen types of debt such as student loans, alimony, unauthorized debts, major purchases of unnecessary items over five hundred and fifty dollars, and maintenance payments that you will be unable to remove with any ease, if at all. Do not suppose that by filing for bankruptcy these financial obligations will simply vanish.
In addition, still another decision you must make if you are to file for bankruptcy is whether you will file for Chapter 7 or Chapter 13 bankruptcy. The former choice is in all likelihood your best option if you hope for complete liquidation of your debts. However, it is not automatically possible to file for Chapter 7 bankruptcy unless federal bankruptcy laws show that you have the eligibility to file for this chapter of bankruptcy.
Yet another option you may want to consider is Chapter 13 bankruptcy. This differs from Chapter 7 bankruptcy in that it will help you with rearranging your debts rather than eliminating them. The benefit to this is that Chapter 13 bankruptcy helps ensure that your monthly payments are reduced, putting you in a much better position to repay your debts and regain financial stability.
It is usual when filing for bankruptcy under Chapter 13 that the process will take between three and five years to eliminate all of your debts entirely.
And still, there are quite a few steps involved with Chapter 13 bankruptcy before the process is complete. You will be permitted to keep certain assets and in point of fact these assets are protected under the laws that regulate Chapter 13 bankruptcy. However, similar to Chapter 7 bankruptcy, you must meet various requirements before you will be eligible to file for Chapter 13 bankruptcy.
Something thing to remember is that the choice of which chapter you file is not your choice, but is the court’s decision. This is a great reason that you may want to get the assistance of a bankruptcy lawyer who can show your financial position in a light that will allow you to file for the preferred chapter.