What Do You Lose if You Declare Bankruptcy?
Before you finally go to the judge or court to file for bankruptcy, the major worry to have is what you stand to lose. It might be your house, property, a potential job, or client as the record of your bankruptcy is available to public access. Bankruptcy is the last resort when the debt starts to choke you and the creditors endlessly harass you with unwanted calls and letters. Filing for bankruptcy leaves you at a temporary discharge from the creditors but what does it do to your credit record? What do you stand to lose after the judge approves your case?
Losing your property depends on how well you understand chapter 7 and chapter 13 when filing a bankruptcy. Chapter 7 will require that you sell some of your assets to pay off a part of the debt. The law guarding chapter 7 can be better explained to you by one of our attorney lawyers at Advantage Legal Group. This is called the liquidation and some of your property would be taken with exemption to retirement accounts, car, and house. This also allows you to relieve your debt by surrendering some of the assets belonging to you. This is meant for people with limited incomes and that is why the property is not taken. Companies and individuals can file this, and the discharge takes about three to five months to be received.
Chapter 13 bankruptcy involves the court giving you a repayment plan which protects your property if you successfully complete this plan. When this payment is completed, and some creditors are laid off, the court discharges other bills like the credit card and medical bills. This allows you as a debtor to keep your property and catch up on missed mortgage and cars. Chapter 13 allows the individual to make monthly payments for three to five years. This will require you to sell off some property to pay off debts.
The bankruptcy rules differ from state to state and there are set limits for trustees and what you can keep are within these limits called personal bankruptcy exemptions. Being able to keep your property depends on the pay you make monthly to your creditor. You can always keep your property, but it does not stop you from always falling behind on credit cards. The decision to sell your house is personal and would not be blamed on the creditor. It is natural to worry about your family and house and what you need is a financial coach or legal group like Advantage Legal Groups for consultation and advice. To avoid such fear over losing your property, chapter 7 serves as the best option for immediate debt relief.
No one wants to lose their property as what we all need is financial freedom. Our help runs from businesses to individuals and families, this is the right time to contact us if you are in Washington state including Bellevue, Redmond, Kirkland, and Seattle. Let us assist you in a difficult time as this one.