In a new year, many people think about how they can improve their financial situation for the year to come.
When a person decides to file for individual bankruptcy, he or she will have very personal preferences when it comes to what sacrifices he or she is willing to make in order to get a fresh start from his or her debts. For many people, the line is drawn at the selling of their car. A person's car can be invaluable to his or her independence as well as his or her ability to get to work and earn an income.
Does it feel as though the weight of your debts is crushing you? If so, you probably wonder if bankruptcy is the right decision. While it's not the right decision for everyone, many people have found financial freedom from filing for bankruptcy.
The first step in getting a fresh start from your financial struggles is by choosing the right bankruptcy chapter to file with, and taking action by committing to bankruptcy. But how do you know what chapter to file with if you don't know how the reality of life will look?
One of the most stressful aspects of financial hardships is the reality of having to deal with constant harassment with debt collection agencies.
Filing for bankruptcy is often seen as a last resort, mainly because of the consequences many see it as having. Many people believe that going through a bankruptcy will result in you losing your home, car, other important possessions and being left with a terrible credit report. However, this is not true. The key lies in choosing the type of bankruptcy that is right for your particular situation.
When filing for Chapter 13 bankruptcy, you will have already had some financial trouble in repaying creditors. The purpose of Chapter 13 is to help people repay their debts in a way that they can afford, and to stop the harassment from creditors. It is already a great deal of work to create and submit the original paperwork, and the judge will only sign off a filing if he or she believes that it is realistic to pay off.
In the cases of individual bankruptcy, there are three main kinds of bankruptcy to choose from: Chapter 7, Chapter 11 and Chapter 13. All are ways to try and relieve the debtor of their pressures and help them to get back on track.
The main component of a Chapter 13 Bankruptcy is that it forms a scheme for the individual to be able to feasibly repay all or part of his or her debts. It is ideal for those with a regular income, and is a way for an individual to avoid liquidating all of his or her assets.
Coming to the realization that your debts are more than you can handle is a rough place to be. Once you know what options you have to deal with these debts, you will have to decide what to do. One of the choices you have is Chapter 13 bankruptcy.