The most popular question asked regarding bankruptcy is: Will everything be lost if I file? Most of the times when you file for bankruptcy you can choose to keep your property which may include the home, personal goods and vehicle. In rare occasions, if your property is worth more than what you owe however they may take it and sell so they can divide it to the people in which you owe.
If you have multiple debts then chances are if you choose not to file bankruptcy then you may lose your belongings because creditors can take money from your paychecks, and bank accounts which may make you miss house and vehicle payments.
Can I file alone or does my husband have to file with me as well? If most of the debts are in your name only, your husband may not have to file. Creditors usually cannot hound a spouse who did not file, unless he/she is a co-signor on the account. Then the bankruptcy should not be marked against the spouse’s credit report. The rules do differ, however, from county to county so make sure you check with your lawyer representing you to make sure.
There are two kinds of bankruptcies one is a chapter 13 which means that you and your creditor mutually agree for you to pay them back in monthly payments until your debt is settled with them. A chapter 7 bankruptcy is normally a total bankruptcy which means that you are wiping all slates clean and trying to start over. Both bankruptcies put a mark on your credit which lasts either 10 years or 13 years.
The last thing that you will need to do is talk to a lawyer about your situation and has him or her give you the best advice for the situation you are in. On average a reasonable lawyer will charge you between $700 dollars and a few thousand dollars. You will need a lawyer to get all the paper work done properly and correctly. You can file for bankruptcy yourself but it is better and advisable to have a lawyer do it for you because generally creditors will stop contacting you once a lawyer is involved.
Look at all the possible aspects of filing before you sign your name. Filing bankruptcy is not for everyone. You may find an alternative option instead of filing.
Dawn Enstruthe is a writer for Ginko Financial which has info on become a certified fiancial planner and lowest Chicago morgage refinance rates.
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