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The Curious Bag
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Filing for bankruptcy involves initiating a legal process that helps you eliminate or reduce your debt when you are no longer able to pay it. It is viewed as a last resort because it entails several long-term consequences.
Filing for Bankruptcy
To officially file for bankruptcy, you must first find your local bankruptcy court where you'll be given the proper filing forms. It is suggested that you speak to a lawyer before doing this.
Legal Process
Once you have officially filed for bankruptcy, the legal process begins. You should first notify your debtors that you are filing for bankruptcy. You'll then be assigned a trustee who will assure that you provide all the needed information to the court.
Meeting Creditors
The next step involves meeting with your creditors' lawyers to see if a deal can be worked out for repayment. They will also affirm that all of the information you've provided is correct.
Chapter 7
When you file for Chapter 7 bankruptcy, you are requesting that you be cleared of all your debt. This has a much more severe effect on your credit rating than Chapter 13.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows you to set up a repayment plan with the court to repay all, or part, of your debt over a given period of time.
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