Between 2012 and 2013 bankruptcy filings fell 13 %. Still, 97,287 Americans filed for bankruptcy in July of 2012 alone. Filing for bankruptcy can be a way out of debt when there are few or no options left. The benefits of filing for bankruptcy can help individuals and families move beyond the burdens of their debt and move forward with their lives. However, with all of the myth and folklore shrouding bankruptcy regulations you may be wondering, can I file for bankruptcy. This is perfectly sensible question, and the less than simple answer is yes.
Why is this yes to filing for bankruptcy not so simple?
The key to filing bankruptcy lies in what kind of bankruptcy you file for. Knowing the different chapters of bankruptcy makes understanding this yes slightly more difficult. The two most common bankruptcy options are chapter 13 and chapter 7. Chapter 13 bankruptcy rules will be different from chapter 7 bankruptcy laws.
Chapter 7 bankruptcy deals with the unsecured debts of an individual. Meanwhile chapter 13 bankruptcy asses all debts, both secured and unsecured. These differing types of bankruptcy do have eligibility requirements based on work status, amount and kind of debt, and the ability to pay that debt back. Choosing the right bankruptcy option often relies on knowing the benefits of these specific bankruptcy options. There are multiple benefits of filing bankruptcy. Knowing the benefits of filing bankruptcy depend on what chapter of bankruptcy you file under.
The primary benefit of filing for chapter 13 bankruptcy would be the prevention of foreclosure on a home or repossession of a vehicle. This prevention happens by establishing a payment plan for secured debt. Secured debt is debt owed on property. Chapter 13 bankruptcy will also work to create payment plans for unsecured debt in order to eliminate all debts owed. The duration of payment plans typically last from three to five years.
Upon filing for chapter 7, the most common form of bankruptcy in the U.S. all unsecured debts will be eliminated. Unsecured debt is any debt that is not attached to a property, such as a home or car.
Can you file bankruptcy twice. The simple answer is yes. Real estate mogul Donald Trump filed for bankruptcy three times before finally getting his business ethic right enough to turn consistent profits.
Despite the benefits of filing bankruptcy court fees are not one of them. The cost to file for bankruptcy varies based on sate. For instance, in Arizona filing for bankruptcy costs between $185 and $200. Meanwhile, in Californians pay $306 for chapter 7 and $281 for chapter 13. While the court fees do not need to be paid in full immediately they must be paid within a reasonable amount of time. Courts can work with bankruptcy filers to create a payment plan for these fees. In either case, filing of bankruptcy will save far more money than the allotted filing feee.
Ultimately the most sure fire way of choosing the correct bankruptcy option will be to seek the council of a dedicated bankruptcy attorney. Read more about this topic at this link.