The recent economic crisis has made it harder than ever for many Americans to pay their debts. The result is that more and more people are considering filing bankruptcy in order to get out of their debt.
When you file bankruptcy, you will be discharged of your debt. This means that you will not have to pay any more interest or penalties on the debt. In fact, if you owe a lot of money to the credit card companies, banks, and other lenders, you may be able to get your credit rating restored. However, you should understand that once you file bankruptcy, you will not be able to get rid of the debt by paying the lender back. Instead, you will have to wait until you are completely out of debt before you can apply for another loan.
There are two types of bankruptcy: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy involves liquidating all of your assets, while a Chapter 13 bankruptcy involves selling off some of your assets in exchange for being able to keep your home. Both types of bankruptcy involve you losing some of your possessions, but the difference between them lies in how much you will lose.
A Chapter 7 bankruptcy involves you losing everything you own, including your house and car. However, you will still be able to keep some of your property, such as clothing and jewelry. If you have no other way to pay your bills, this type of bankruptcy may be a good option for you. You will have to make an appointment with a bankruptcy attorney before you file, but it will be worth it because you will not have to worry about repaying your debts.
Chapter 13 bankruptcy involves you selling off some of your possessions in order to pay your debts. This type of bankruptcy is usually recommended for people who have been making their payments on time but still cannot afford to pay the balance of their debt. You can choose which assets you want to sell, including your car and your house. Once again, you must first meet with a bankruptcy lawyer before you file, but this will also be worth it because you will be able to keep your home.
Before you file for either type of bankruptcy, you should consult with a bankruptcy attorney who can help you decide whether or not this is the best course of action for you.
For more information visit us at www.gloucesterbankruptcyattorney.com