Posted on March 2nd, 2014 in Comments Off
If you feel that you have reached the end of the road with your finances and that you are on the verge of complete financial collapse, then you should know that you can file for bankruptcy. Through this process, you will end up giving your lenders only a part out of what you own them and you will do this according to a court order. Still, you should know that this is a fairly lengthy process (depending on the type of bankruptcy) and that you will need some money to intent it.
Chapter 13 is one of the most frequent types of bankrupty filed by individuals. By declaring this type of bankruptcy, the court will establish how much you can afford paying back your debtors without depriving yourself from the basic needs (shelter, food and so on). Although you will be paying them some money, it will most likely be much less than you would have had to pay if it weren’t for the bankruptcy declaration.
Moreover, by filing for Chapter 13 bankruptcy, you will not risk losing your most important assets, because once the debt is consolidated according to the court order, the lenders will not have anything else against you and your file with them will be closed.
Declaring bankruptcy has its own risks, of course and there are some negative effects that may affect you on medium term and long term. Most of these risks are related to the fact that you will not be able to your credit report and to the fact that this financial move may appear in the report for up to 10 years since the moment it was filed.
Furthermore, Chapter 13 bankruptcy is the type of bankruptcy that is more suitable for people who have a higher income, since the judge will have to calculate exactly how could can earn at the moment. If you still want to file for this type of bankruptcy (even though you do not have the money yet)m then do make sure that you understand each and every one of its terms. Also, if you do not have enough money, then look up a fort worth bankruptcy attorney and ask him/her exactly about your issue. He/she will be able to solve everything in a professional, safe ad hassle-free method. Although the service of a lawyer may cost you more, in the end you will find out that it was a great investment to make!