Since the economy started having troubles, many are looking for financial protections. Some look to save their house, or get away from collectors by filing for bankruptcy. This is not something you want to do by yourself, although it can be done. Working with an expert is a good thing, since the more thorough your filing is, the better off you are.
There are different types to file for and that is where people can get confused. You want to have all the facts prior to considering this. Some people have no choice but to file. Others might be in a position to make different arrangements. You will see your credit score impacted heavily by filing.
Chapters 7 and 13 are the main types used and most popular so to speak. Chapter 7 stays on your credit report for 10 years, but is a full discharge of all debts as allowed. Chapter 13 stays for 7 years on your report, but is a reorganization of debts with a payment plan. This plan can be outside the court, or via the court.
Not everyone will qualify to file for this protection. There are websites dedicated to information on the different types of filings. Research, and even look at debt counseling to help out in better budget practices. Just doing the filing doesn't cure your problems if you still do not budget properly.
Many people turn to chapter 7 protection after losing a job, and have major mounting credit card and other debts. After filing and giving notice, most every collector call will stop, and there should not be any harassment. Filing can also stop garnishments or other forms of collections if done properly.
A Means Test will be performed with a Chapter 7 to verify debts against your current income. For those that qualify, it will allow you to proceed. The court needs a full list of all debts and any assets. A court trustee will get assigned to your case to verify all information. Any creditor will be able to appear and protest. Once this process is complete and you are approved, a letter of discharge will be mailed to you. Discharged debts can not be collected on.
Chapter 13 takes a list of all debts and assets. A trustee is assigned to set up a repayment plan to being repaying their debts. The payment is decided by the court and the length of repayment is set.
Many other types of bankruptcies exist for bankruptcies and other cases. Your attorney would know the best path to take for your circumstances. Some businesses reorganize after a solvency.
Recovering from financial disaster is possible using the right tools to fit your needs. Making the decision to file is important, and has long reaching affects.
There are different types to file for and that is where people can get confused. You want to have all the facts prior to considering this. Some people have no choice but to file. Others might be in a position to make different arrangements. You will see your credit score impacted heavily by filing.
Chapters 7 and 13 are the main types used and most popular so to speak. Chapter 7 stays on your credit report for 10 years, but is a full discharge of all debts as allowed. Chapter 13 stays for 7 years on your report, but is a reorganization of debts with a payment plan. This plan can be outside the court, or via the court.
Not everyone will qualify to file for this protection. There are websites dedicated to information on the different types of filings. Research, and even look at debt counseling to help out in better budget practices. Just doing the filing doesn't cure your problems if you still do not budget properly.
Many people turn to chapter 7 protection after losing a job, and have major mounting credit card and other debts. After filing and giving notice, most every collector call will stop, and there should not be any harassment. Filing can also stop garnishments or other forms of collections if done properly.
A Means Test will be performed with a Chapter 7 to verify debts against your current income. For those that qualify, it will allow you to proceed. The court needs a full list of all debts and any assets. A court trustee will get assigned to your case to verify all information. Any creditor will be able to appear and protest. Once this process is complete and you are approved, a letter of discharge will be mailed to you. Discharged debts can not be collected on.
Chapter 13 takes a list of all debts and assets. A trustee is assigned to set up a repayment plan to being repaying their debts. The payment is decided by the court and the length of repayment is set.
Many other types of bankruptcies exist for bankruptcies and other cases. Your attorney would know the best path to take for your circumstances. Some businesses reorganize after a solvency.
Recovering from financial disaster is possible using the right tools to fit your needs. Making the decision to file is important, and has long reaching affects.
About the Author:
Looking for help from a debt consolidation firm? Serving the Durham region since 1992, the bankruptcy trustee Pickering are your trusted expert in debt consolidation and credit counselling Coburg.
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