Many people will file for bankruptcy to solve financial problems. Whether to stop a foreclosure, repossession of a car or huge credit card debt, bankruptcy can give you a fresh start.
Although it can be a fairly easy process to start, filing bankruptcy requires a lot of paperwork. Filling out all of the proper forms, checking all the right boxes, and making sure you have every piece of paper you need – and there is a lot – is crucial, and you’ll probably want to consult an attorney for help.
One of the first things you’ll be required to do is take an online credit counseling course before you file for bankruptcy.
You won’t lose everything. Individuals may exempt 12-thousand dollars, and married couples, up to 24-thousand dollars. You’ll have to list everything you own including clothing, furniture, cars, jewelry, and more.
Once you have filed the petition, you’ll be given a schedule of dates by which you’ll have to file certain forms, or your case may be thrown out. This, in particular, is where an attorney can help you.
In most instances, creditors who are owed for a house or car are secured creditors and have the right to foreclose or repossess. This is where you may file Chapter 11 or 13 to propose a plan to repay past due amounts.
A bankruptcy filing can appear on your credit report for up to ten years. It’s important that you update your three credit reports to ensure that they are accurate after your bankruptcy is granted.