What you need to know about bankruptcy assets
Many Americans find themselves in the unfortunate situation of considering bankruptcy to help them with their debt problems. Among the most common questions about bankruptcy, most people want to know what will happen to their assets if they decide to go through with the process. To understand this, you must first understand the different forms of bankruptcy.
The most common form of bankruptcy is known as chapter seven bankruptcy, which is designed to completely do away with your debt problem. The disadvantage of this kind of bankruptcy is that you'll have to give up some of your assets (if you have any) to help pay your obligations.
The other major form of bankruptcy is called chapter 13. Instead of just getting rid of your debt completely, chapter 13 is meant to form a payment plan to help you get back on track. This is often used to help people get caught up with their mortgage payments, and the repayment plan usually last 3 to 5 years. The good part about chapter 13 is that you don't have to forfeit any of your assets.
As you can see, chapter seven is the best option if you wish to rid yourself of your debt entirely. The major problem with this, besides the damage to your credit, is liquidation. In other words, you will have to get rid of some of your assets to help pay creditors what you owe them.
Now, you probably don't have all that many assets if you've reached the point of filing for bankruptcy. It's no surprise that most chapter seven bankruptcy cases are considered no asset cases, which means that the consumer doesn't have anything worthwhile to sell.
Of course, most people are primarily concerned with their house (and to a lesser extent, their automobile). The details will depend on your state as well as how much your house is worth, but in most cases you have a considerable amount of protection when it comes to your house.
You should realize that finding a good bankruptcy attorney is essential to help you file bankruptcy successfully. There are just too many details for you to try to figure everything out on your own.
That doesn't mean that you shouldn't try to learn as much as possible before consulting your lawyer. You should continue to find articles like these because an informed client will make things easier for the lawyer, which can end up saving money in the long run.
The most common form of bankruptcy is known as chapter seven bankruptcy, which is designed to completely do away with your debt problem. The disadvantage of this kind of bankruptcy is that you'll have to give up some of your assets (if you have any) to help pay your obligations.
The other major form of bankruptcy is called chapter 13. Instead of just getting rid of your debt completely, chapter 13 is meant to form a payment plan to help you get back on track. This is often used to help people get caught up with their mortgage payments, and the repayment plan usually last 3 to 5 years. The good part about chapter 13 is that you don't have to forfeit any of your assets.
As you can see, chapter seven is the best option if you wish to rid yourself of your debt entirely. The major problem with this, besides the damage to your credit, is liquidation. In other words, you will have to get rid of some of your assets to help pay creditors what you owe them.
Now, you probably don't have all that many assets if you've reached the point of filing for bankruptcy. It's no surprise that most chapter seven bankruptcy cases are considered no asset cases, which means that the consumer doesn't have anything worthwhile to sell.
Of course, most people are primarily concerned with their house (and to a lesser extent, their automobile). The details will depend on your state as well as how much your house is worth, but in most cases you have a considerable amount of protection when it comes to your house.
You should realize that finding a good bankruptcy attorney is essential to help you file bankruptcy successfully. There are just too many details for you to try to figure everything out on your own.
That doesn't mean that you shouldn't try to learn as much as possible before consulting your lawyer. You should continue to find articles like these because an informed client will make things easier for the lawyer, which can end up saving money in the long run.
posted by Debt Consolidation Loan at
3:27 PM
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