What You Need to Know About Bankruptcy

Have you lost your job and the bills are piling up? If you have mounting debt and no way to pay off the bills in the near or far future, then you may want to give filing for bankruptcy a closer look. No one wants to file for bankruptcy, but oftentimes it is the only viable option for those looking to better their financial future. Want to know more about bankruptcy? Check out this article to learn what you need to know before filing, and then make sure you contact a bankruptcy attorney in Seattle, WA, to get started.

Filing for Bankruptcy: What You Need to Know

Filing for bankruptcy may seem fairly straightforward, but the more you know about the process, the less stress and uncertainty you will feel. If you are unsure whether or not you should file for bankruptcy, check out this list to learn the essentials on what you need to know:

• There are different options available to you: Your financial situation will determine the type of bankruptcy you should file. The majority of Americans file for Chapter 7 bankruptcy. Chapter 7 bankruptcy will absolve you of nearly all your debt (see exceptions below), and in exchange you will surrender your assets (your home, your car, any cash on hand) to pay back your creditors as much as possible. You can also file Chapter 13, which allows you to restructure your debt into more manageable payments. This type of bankruptcy is more involved, but you are able to keep most of your assets. A large portion of individuals who file for Chapter 13 bankruptcy end up filing for Chapter 7 eventually, as their debt is still unmanageable.
• Not all debt can be erased: With Chapter 7 bankruptcy, you are absolved of all of your debts. There are exceptions, however. Child support, back taxes, and student loans are typically ineligible for removal from your debts, even if your request for bankruptcy is granted.
• You will be granted an automatic stay: If you are experiencing significant pressure from your creditors, then you may wish to file for bankruptcy as soon as possible. As soon as you file you will be granted an automatic stay from your creditors pursuing repayment. This means that even though your case is still pending, your creditors are not allowed to contact you or seek repayment. All of your debts will be put on hold until your petition is completed. For those who are experiencing severe and constant pressure from creditors, this automatic stay is a huge relief.
• There are consequences when filing for bankruptcy: While you may be granted debt forgiveness if your petition for bankruptcy is accepted, this does not mean that you will walk away from this situation unscathed. Debt forgiveness comes with a price, and that price is typically a serious hit to your credit. In most instances, you will not be able to receive a reputable loan for 5-7 years, and your interest rates may be very high for some years following that period. If you own a home, a car, or other assets before you file, once your petition is granted you will, in all likelihood, lose those assets.
• Not all petitions are straightforward: While it is possible for an individual to petition for bankruptcy on their own with success, your chances for a positive outcome are greatly increased when you hire a bankruptcy attorney in Seattle, WA. If your situation is complicated, you are unsure which type of bankruptcy to file, or you just want to ensure that your petition is taken care of properly, then hiring a bankruptcy lawyer is a great way to go.

Source : articlesbase.com