Master the Chapters
There are only two chapters that an individual needs to know. These are chapters 7 and 13, respectively. Chapter 7 is essentially for those who cannot get out from under their debt and do not have a steady income stream. Chapter 7 is frequently referred to as a """"new beginning"""".
Chapter 13 consists primarily of consolidation. If you still earn a reasonable wage and could benefit from consolidating your debt into one payment, this is your best option.
In either case, you will receive relief from creditors, as they will be unable to contact you legally and must go through your trustee. If you own a home, it will be exempt, as will a variety of other objects and portions of your property. The implication is that you will be unable to repay anyone if they take your home, clothes, vehicle, etc. Therefore, some items will be exempt from your bankruptcy filing.
Figure Out Your Goal
Your attorney can help you sort this out, so it's not as if you need to arrive with a firm grasp of the situation. Nonetheless, it is essential to consider the matter thoroughly, so that if you discover something in which you have no interest whatsoever, you will not have to pay an attorney to determine this. Here are some things to think about.
A bankruptcy will ruin your credit for seven to ten years. Credit cards and loans will be very difficult to obtain. Therefore, if you petition for protection, homes, cars, boats, school loans, etc. are eliminated from consideration. Alternatively, you will be charged exorbitant rates. In addition, insurance premiums will increase, and it will be more difficult to obtain coverage. This may not matter to you if you are in dire need of debt relief, but it is something to consider.
In either case, you will be required to make some sacrifices. Prepare yourself for a few difficult years. The sooner you can escape this chaos, the sooner you can accumulate capital.
Avoid defaulting on credit cards.
We hear this repeatedly, as if it were an urban legend, that defaulting on your payments is equivalent to declaring insolvency. It isn't. Not even close. If you don't pay your credit card bills, they will harass you, charge you a ton of additional fees (which increases the amount you owe), and if that doesn't work, they will sue you. If you file for bankruptcy protection, you are shielded from additional fees and phone calls, and a mediator is appointed between you and the creditors.
Bankruptcy is not a Right, but a Privilege
The only option available to you is to petition for bankruptcy. You must first qualify, and you may still be rejected. Remember this as you proceed through the process. Whether you are in this position due to medical bills or circumstances beyond your control or because of poor decision-making, you must be professional throughout this process. File your documents on time, be respectful, arrive on time, pay your bills on time, etc. You are in difficulty and require assistance. Be courteous about it.""
" - https://www.affordablecebu.com/
