Everyone assumes they know a thing or two about bankruptcy, but in reality most people borrowing credit have no idea what it actually means. Unfortunately, most popular conceptions about bankruptcy chapter 13 or 7 are false and should not inform any series financial decision a person in debt may make. Arming yourself with knowledge is the best thing to do before deciding to declare.
There are many different types of bankruptcy, and the differences between your options are stark. Filing the type of bankruptcy that isn’t best suited to your situation can result in the loss of your personal property and permanently damage your credit rating. If you have had enough of creditors contacting you around the clock and being denied loans or other financial benefits, you should immediately contact a lawyer who is well-versed in bankruptcy and personal finance laws. It is not an easy road for individuals who are filing without the help of professional counsel.
While Chapter 7 is the most common type of filing that individuals make, Chapter 13 can be a far better solution given your circumstances. That’s because Chapter 7 essentially turns over your assets, such as your car or home, to a court-appointed figure who will begin selling things off in order to pay your creditors. This is usually a last resort type of bankruptcy. Chapter 13, on the other hand, allows you to consolidate your debt and begin paying back your creditors on a payment plan that is supervised by the court and will eventually result in a discharge.
