Many people out there are struggling and looking for simple bankruptcy information to help get a better understanding of what filing bankruptcy can accomplish. We will attempt to give the brief highlights of basic bankruptcy information that you need to know to help you with your bankruptcy decision. The good news is despite the fact of some recent law changes in 2005, the ability to file for bankruptcy is still attainable for most. Whether you have taken a look at any of the multitude of credit card debt calculators or not it’s no secret that if you continue to make the minimum payments the odds of you getting ahead are not in your favor. The refreshing news is that the Federal Government has put into place bankruptcy laws to be used for legitimate means thus providing an honest way for people who are in a bind to wipe the slate clean on their debts. However if you still are on the fence and would like to exhaust all options before you file be sure to check to check out these tips how to avoid bankruptcy.
Qualify for Bankruptcy-How Difficult Is It?
One of the first concerns for most is whether you can even qualify for bankruptcy. This really is something that only a qualified personal bankruptcy attorney can answer. Generally it has to do with debtor’s income in the past in comparison to debtor’s current monthly income. If a debtor’s current monthly income is less than what was being earned before this figure is figured into an equation allowing the attorney to quickly assess if you qualify for bankruptcy. Generally if you have had any sudden large changes in your income levels that have left you unable to make your payments then you are likely to qualify. 
Types of Bankruptcy-The Basics
When covering the bankruptcy basics are several types of filings that can be utilized. If you are one of the many who is confused regarding the main filings that most people use you are not alone. The main two types of filings that most people gravitate toward is either a chapter 7 bankruptcy or a chapter 13. Chapter 13 ideally is selected when someone has a house or property that they would like to ideally keep. A payment plan is arranged with reduced interest rates generally over a three to five year term such that the debts can be paid off. The drawback to this is that it’s usually a substantial amount more money up front for a chapter 13. Most people ending up filing a chapter 7 due to the fact that perhaps they are underwater on their place and want to get a fresh start elsewhere or they just simply don’t own any real assets. Chapter 7 generally is much more affordable and completely eliminates usually most of a person’s debts including garnishment. School loans and taxes typically are the only debts that can’t be included.
Bankruptcy Process-Getting the Ball Rolling
If you are wondering how the bankruptcy process starts after you find an attorney you are comfortable working with we will cover the first few steps. Generally the process officially starts by the filing of a bankruptcy petition after you take your approved credit counseling course. The lawyer usually starts by making a list of your creditors and the amounts owed as well as a list of your liabilities combined with assets. From there whomever you hire will be responsible for filing this petition which will put a halt to the phone calls as well as threatening letters. After hiring an attorney you should be instructed to direct all further correspondence from phone and mail to your lawyer. For many this can be a great relief and provide a much needed break from the around the clock harassment. From there final paperwork will be prepared for bankruptcy court to obtain your discharge.
Stop Foreclosure With Bankruptcy
In many cases a foreclosure can be stopped with a chapter 13 bankruptcy. This would of course be highly dependent on how far into foreclosure proceedings you are. It is also governed by the state which you reside since each state has its own individual laws. If you’re simple looking to delay foreclosure with bankruptcy a chapter 7 usually your best option as you can usually delay proceedings for at least a few months. Be sure to take advantage of a local attorney’s free consultation. There are many that are standing by to answer questions and offer valuable bankruptcy advice. They can be an invaluable asset to get your questions answered on your particular state laws and the best course of action for you to follow.
