The Best Way to File Bankruptcy

Before you ever file for bankruptcy or even thinking about filing one, the first thing you need to understand is the best way to file bankruptcy and why it was created in the first place. Having the basic knowledge of the best way to file bankruptcy will help you consider other alternatives, because for some individuals, bankruptcy can only be the last choice and for others it is the best choice. You need to understand that the best way to file bankruptcy was designed under the federal law to help protect individuals and businesses with debt problems from their creditors. This gives those individuals and businesses a chance for a fresh financial start. The disadvantage in having to file for bankruptcy is that it takes six to ten years or more before you are able to remove the bankruptcy, this makes it next to impossible to get a new credit after filing for bankruptcy. The truth is that you have a very low credit score today, say 400 to 500 you will not be able to get credit anyway. So what is the difference between 500 credit score and bankruptcy? Virtually, none, the result is the same, which is no credit.

After being familiarized on the best way to file bankruptcy and how it works, recognized the status of your assets and choose wisely on which type of bankruptcy is more suited for your financial situation. There are four types of bankruptcy under the law that you can file, but most people either file a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy. Chapter 7 is a “straight” or “liquidation” bankruptcy. The basic idea in this type of bankruptcy is that you will be discharge of any debt you owe from you creditors in exchange that you give up your property, except for “exempt” properties that you are allowed to keep which are stated in the law. Other properties that are not “exempt” are considered sold and the money is distributed to your creditors. Chapter 13 is commonly filed by people who earn more than the average income specified in different states. Chapter 13 bankruptcy allows an individual to pay his or her debt over a period of years. This in return will allow you to keep almost all your properties such as your house and car.

There are people you need to know that can help you work out your way out of your financial situation. You can go to a credit counseling agencies; they can help shed light on some of your worries about filing for a bankruptcy, some even offers debt consolidation plans and credit repairs but be wary some of these so call agencies are just there to rip you off. If ever you decide you need credit counseling always ask questions and look for legitimate agencies that have a proven track record. The next person you can go to is a good bankruptcy lawyer. The best way to file bankruptcy is to having a good bankruptcy lawyer to determine the best program for you and answer any questions pertaining to your financial situation. Always consult your lawyer and ask questions, if something is left to be desired from your lawyer never compromise, you can always look for other bankruptcy lawyers that suits you.

Lastly, always file bankruptcy in the best light possible, remember that the best way to file bankruptcy is to get your information from an attorney on what chapter of bankruptcy to file. Once this is determine then get a bankruptcy petition preparer to prepare your documents and walk you through the process. This is the best way to file bankruptcy and the least expensive approach. For this approach, I strongly recommend you visit the site below.

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