Filing For Bankruptcy: The Best Last Resort to End Your Debt Worries

Bankruptcy should be looked at from many perspectives, but the common opinion is that by filing for bankruptcy, you will get your financial obligations paid off and once the process is done your life will be back to normal and you can relax. This assumption can make many individuals to get lax about filing for bankruptcy and in their view it becomes a way of life. On the other hand, lots of people are much more unwilling to go down the bankruptcy road in fear of what other people will think of them.

The truth is that there are no guarantees that once you have filed for bankruptcy your circumstances will be totally free of debt. There are umpteen types of debt such as student loans, child support, fraudulent debts, major purchases of high-end items over two thousand dollars, and alimony payments that you will be unable to do away with easily. Do not believe that by filing for bankruptcy these obligations will simply disappear.

In addition, yet another decision you need to make if you are to file for bankruptcy is whether you will file for Chapter 7 or Chapter 13 bankruptcy. The first option is in all probability your best bet if you want complete elimination of your debts. Nevertheless, it is not automatically possible to file for Chapter 7 bankruptcy unless federal bankruptcy laws show that you are eligible to file for this chapter of bankruptcy.

The other option you may wish to consider is Chapter 13 bankruptcy. This differs from Chapter 7 bankruptcy from the perspective that it will assist you with reorganizing your debts instead of eliminating them. The benefit to this is that Chapter 13 bankruptcy helps ensure that your monthly payments are decreased, putting you in a much better position to pay back your debts and rediscover financial stability.

It is common when filing for bankruptcy under Chapter 13 that the process can take about three to five years to eliminate all of your debts totally.

In addition to this, there are many steps involved with Chapter 13 bankruptcy before the procedure is complete. You are permitted to keep particular assets and in fact these assets are protected under the laws that govern Chapter 13 bankruptcy. However, similar to Chapter 7 bankruptcy, you need to meet various requirements before you are eligible to file for Chapter 13 bankruptcy.

One thing to keep in mind is that the choice of which chapter you file is not your decision, but is the court's decision. This is a great reason that you may want to enlist the assistance of a bankruptcy attorney who can present your financial situation in a way that will permit you to file for the desired chapter.

You must keep in mind that before you file for any kind of bankruptcy, it is best to examine every alternative that might be available to you. You could be a candidate for debt consolidation which will reduce your monthly outgoings and help you to get your finances back together. Do not simply choose bankruptcy as it seems like the easiest answer to your position. Filing for bankruptcy is a drastic undertaking and should only be applied as the last resort, and only after you have exhausted all other options.