There are several categories under the general heading of “bankruptcy” with personal bankruptcy Chapter 7 probably being the most widely recognized. The ultimate goal of taking this path is elimination of debt, though the details of this process can be quite different from simply negotiating debt settlement without bankruptcy.
Keep Your Home?
In many cases, you will be able to keep your primary residence and the vehicles that you need each day, though you’ll have to continue making payments on car loans and mortgages. Your specific plan will probably be different from another person choosing Chapter 7 because each individual situation is different. You can learn more about how this decision will affect you when you work with a legal professional such as Fred Wehrwin, P.C.
There are also some specific guidelines for property that you can retain, which your attorney will be able to outline for you during your consultation. For example, he or she will probably tell you that pre-tax dollars placed in a retirement account are exempt (cannot be attached by creditors). You’ll also learn that creditors have 90 days to file an objection to a discharge of debt. Details such as this, which your lawyer will outline, can make a lot of difference in your financial status when the process is over.
If you are considering personal bankruptcy Chapter 7, it’s essential for you to be prepared. Be sure that you’re very clear about what you should bring with you for your consultation. The information you provide should include the name of each person or business to whom you owe money. This list should include the debts that you want to continue to pay. It’s also important to have an address and other contact information for each of the names on the list, along with the amount of each debt. You can also connect them on Facebook.