Are you sure that bankruptcy is the only way to repair your credit and get rid of your debts? If you think you have no other alternatives, you may be wondering, how do file bankruptcy.
You’ll need to be aware of the process that comes along with filing, so here are some ways that you can prepare yourself.
First, and most importantly, you will need to take a good look at your finances, maybe with an accountant, to be sure that bankruptcy is the only option you have. A bankruptcy can stay on your credit for about 8 years, and during this time, you may not be able to purchase a home, buy a new automobile, or receive a line of credit from a loan or credit card company.
So, if there are other ways for you to mend your finances without having to take this step, talk it over with your accountant.
Also, under the Bankruptcy Abuse Prevention and Consume Protection Act, you must receive consumer credit counseling from company that the U.S. Trustee has approved within 180 days of the filing of your case.
Then, you’ll need to determine exactly how you want to file. Chapter 7 bankruptcy is becoming less common, since Chapter 13 helps individuals in the long run, and involves financial organization.
Under Chapter 7 bankruptcy, an individual must sell valuable items and use the funds to repay debts. This could be a fairly unstable way to pay off debts, since there are no guarantees that the items will sell in a timely manner.
When looking at student loan bankruptcy; it pays to consult professionals as a further way to move forward.
Chapter 13 involves wage garnishment, which means that a set amount or percentage of your paycheck will be taken each pay period so your debts can be settled.
If you still wondering how to file for bankruptcy you may want to take some bankruptcy classes so that you will have a better understanding of the process.
Completing the ‘assignments’ given in class may help you to reach your financial goals faster, and will teach you about things like getting the best insurance policy for yourself, your home, and your automobile, creating the most realistic budget for paying off your debts, and using your credit wisely.
What about costs involved? Filing a claim could cost up to $1,700, but you may be able to pay in installments depending on the state that you file your claim in. If you are filing Chapter 7, you will have to pay your fees upfront, but your payments can be included in your overall payment plan for Chapter 13.
Tags: bakruptcy, bankruptcy claims, going bankrupt, how to file for bankruptcy, student loan bankruptcy
