If you currently owe thousands in consumer debt you may be considering filing a personal bankruptcy. The collection calls may never seem to end, and you could also owe thousands in medical bills. However, it’s important that you understand the ramifications of filing bankruptcy on your personal debts. If you are under undue stress and owe much more than you can bring in, then you could be ready to file a bankruptcy with the help of a lawyer.Options for Filing Your Personal Bankruptcy
There are currently two options for filing your bankruptcy including a Chapter 7 or a Chapter 13. A Chapter 7 would mean that you file for a liquidation of all of your debts without any repayment necessary. A Chapter 13 means that you are filing but repaying your debts through the court system. The Trustee would make a listing of all creditors and set up a payment arrangement made directly to the Trustee each month that would be agreed to by your creditors. The plan is generally anywhere from 3 to 5 years total.The Debts You Can File in the Bankruptcy
When you file a bankruptcy you can file all types of consumer debt including credit cards, medical bills, personal loans, recreational loans and more. However, there are certain types of debt you cannot file against including student loans, alimony, child support and back taxes. Once your bankruptcy is officially filed creditors will receive a warning that they are not allowed to contact you regarding what you owe. The filing will help relieve stress until the court hearing and when the filing takes place. Once the debts have been discharged, you will be able to be completely clear of any obligations that you filed in your bankruptcy.
There are many important details regarding filing, how to file, and what you should do post filing. The laws regarding bankruptcy can be somewhat complicate when you own property as well. If you have questions regarding your unique case you should consult with a bankruptcy lawyer today.