subject: Who May File Bankruptcy [print this page] In the past years, we thought that only rich business men and Giant Corporation or banks get bankrupt. In reality, who may file bankruptcy are the average person that you see walking on the street. It is not more on the mismanagement side that caused most bankruptcy but more on uncontrollable events that is out of the hands of the consumers. When you think about people who may file bankruptcy, you can almost imagine the feeling of how debt can affect people mentally and emotionally, being unable to do something about the debt, except to file bankruptcy.
If you feel the same way like them then you are not alone. You have to realize that bankruptcy is not a sign of weakness but a chance to relieve yourself from the burdens of debt. This is only achieved by those who want to do some changes in their lives and get out of debts. It takes a lot of work and effort to stand on your two feet and file bankruptcy. People who may file bankruptcy understand what bankruptcy means and the power of it. It is the power to control your debt in a way that you can bounce back from adversity from financial losses.
People who may file bankruptcy know that time and money is important in this crucial period of their lives. Every bankruptcy is very personal for those who want to file it. Knowing what type of bankruptcy to choose is important. Chapter 7 is for those who have no other way of repaying their debt. It is a straight process that all properties of the debtor will be liquidated except for some exempt properties cited under the law which the debtor can keep. Although chapter 7 may seem to be harsh for some people who are new with bankruptcy, it is the best type of liquidation one could ever achieve. All their debts become non-existent because of chapter 7; all they really need to do is to repair their credit and start a new foundation for their financial base.
Chapter 13 is for people who may file bankruptcy but they still have means to pay their debt. They are given a repayment plan by their respective credit counseling agencies. This plan is agreed upon by the debtor and creditors. Their income will be deducted from all of the expenses and should have at least a sufficient steady disposable amount to pay the debt in an agreed period of time. Knowing these two types of bankruptcy helps the lives of people who file bankruptcy much easier and you, too, should at least know a few things about bankruptcy. You should know enough but not really be an expert about bankruptcy. There are a lot of ways to make filing bankruptcy much easier and same can be said about affordability when filing bankruptcy. You need at least to have some options before you file. Make sure that the option you think of is favorable for you. You do not need a lawyer to file bankruptcy. Yes, it is easier to just do that but it is very expensive to get one when you can just hire a bankruptcy petition preparer who prepares the paperwork for you then you work hand in hand.
I suggest you ask from other people you know who filed bankruptcy. The most common way to file bankruptcy is to hire a petition preparer. It is straight forward and can save you a lot of time and money. After paying them their flat fee, you can go on your own and finish filing. It can be a little more work but this process is affordable. For more information on how to file bankruptcy, visit the link below.
