Can I File Bankruptcy?
Can I File Bankruptcy? With the current economic conditions and rising inflation, many people are finding that their money does not go as far as before. Gas is upwards of $5.00 a gallon. Despite the message from the White House it appears the nation is heading for a recession. People are using credit to pay for groceries, gas and other daily necessities. As interest rates increase so do those credit card balances. At some point you may be looking at your bank statements and paychecks and realize you just do not have the financial ability to pay all these bills. You’ve looked into debt negotiation, but that is not going to work. So you ask yourself “Can I File Bankruptcy“?
The question is not whether you can but what type of bankruptcy are you eligible to file. For most people there are two likely types of bankruptcy available, a Chapter 7 or a Chapter 13.
Chapter 7 is the form of bankruptcy that is most commonly filed for in the United States. Individuals or businesses may file for Chapter 7 if their debts become unmanageable. Filing for Chapter 7 allows you to keep some property that is considered exempt to the liquidation of assets, such as a real estate mortgage. A Chapter 7 bankruptcy will remain on your credit report for 10 years after filing. The negative effect of this blemish on your credit report may be preferable, however, to the effect not paying your current bills is having, as filing for Chapter 7 will remove the unpaid debts from your credit report.
Chapter 13 allows you to retain your assets provided your debtors accept your plan to pay them within 3 to 5 years. This will allow you to stop foreclosures, eliminate your debts after a period of time, and end collection efforts by third party collection agencies. To file for Chapter 13, you do need to have the financial ability to follow the payment plan you have outlined. Chapter 13 filing does remain on your credit report for 10 years, but allows for the discharging of a wider array of debts than allowed under Chapter 7.
Thomas Law can help and aid in you in determining what any type of bankruptcy filing fits best for your situation.