Things You Need to Know Before Filing Personal Bankruptcy

For personal bankruptcy filing cases there are two types of bankruptcy options available to you namely Chapter 7 and Chapter 13

. With Chapter 7 bankruptcy you can get rid of most of your debts. But by filing Chapter 7 you lose most of your major assets with the exception of certain exempt assets. Moreover chapter 7 remains on your credit report for 10 years during which getting credit becomes difficult.

Chapter 13 bankruptcy on the other hand requires you to work out a repayment plan that needs to be approved by the court. Payments are made over a period of three to five years under the guidance of a trustee. You can keep some of your assets with Chapter 13 and the effects remain on your credit report for 7 years.

However both of the process caters to your specific needs in a systematic way and can provide solution suiting your financial condition. As such bankruptcy filing should be taken as not the end but as the beginning of a new world.

Things You Need to Know Before Filing Personal Bankruptcy

By: Bg Johnson

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