Bankruptcy Facts

If you are thinking about filing for bankruptcy, you should know the basic bankruptcy facts before you file. This article will give you an overview of what you should expect when you file for bankruptcy.

1. Bankruptcy facts – What is bankruptcy?

Those who file for bankruptcy will be able to get a fresh financial start, by not allowing creditors to collect your debts that you owe. Filing bankruptcy will also stop foreclosure or any repossession of property.

2. Bankruptcy facts about chapter 7 and chapter 13.

If you file bankruptcy under chapter 7, what this means is that you are asking to wipe out your debts, but in return for giving up some property. Under this case, your personal property will be exempt. Other property which is not exempt will be sold and creditors will be payed back.

Chapter 13 bankruptcy is different than chapter 7, because you will not have to give up any valuable property, but you must be able to show a plan that you are able to pay off some of your past due debts within 3-5 years.

3. Bankruptcy facts on how much it will cost to file

To file for chapter 7 bankruptcy, you are looking at paying $299, and to file for chapter 13, it will cost $274. If you cannot pay it all in one time, there are ways around this, and you will be allowed to pay it off in installments.

4. Bankruptcy facts on what will not be wiped out

Here is a list of things that filing for bankruptcy will not wipe out:

  • child support
  • some taxes
  • student loans
  • debs which resulted from ‘willful harm’ such as drunk driving
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