For people unfamiliar with financial laws, knowing when to file bankruptcy, or if you are qualified to do so, can be confusing. However, filing for bankruptcy can be a way for you to have a fresh financial start if you feel overwhelmed with debt.
Here are the four facts you need to know about bankruptcy law in the United States:
1. Chapter 7 bankruptcy: Chapter 7 bankruptcy is for individuals who are unable to pay their existing debts. A Chapter 7 bankruptcy attorney can work with individuals who are seeking forgiveness of their debt. However, Chapter 7 bankruptcy also requires an individual’s assets to be liquidated and sold. Certain exemptions can be made in the liquidation, such as one’s house or personal items.
2. Chapter 13 bankruptcy: A Chapter 13 bankruptcy attorney is qualified to represent individuals with regular incomes who seek a reorganization or their debts and a reconfiguring of their debt repayment plans. An attorney can provide you with more Chapter 13 bankruptcy information and let you know how to file for bankruptcy.
3. Chapter 7 bankruptcy and Chapter 13 bankruptcy are the most common types of bankruptcy in the United States.
4. Filing for Chapter 13 or Chapter 7 bankruptcy will reflect negatively upon your credit score, and while they can stay on your credit report for a long time, regularly paying your bills and loan payments can help you re-establish a good credit score. Great references here: charleshuberlaw.com