If you have decided to file for bankruptcy, you likely have at least a few concerns about what will transpire and how specific matters will be handled.
There are two types of bankruptcy, to begin. Chapters 7 and 13 respectively. Although there is a great deal of legal information regarding the two types, they can be separated readily.
In a Chapter 7 bankruptcy, all non-exempt assets will be sold at auction to repay creditors. Except for certain categories of debt, the remaining balances will be erased.
Chapter 13 allows you to retain your assets, but requires you to make monthly payments for 10% to 100% of your total debt, but for no longer than 5 years.
Relax if you have a 401k policy with your employer and are concerned that they will use your savings to pay back your creditors. A 401(k) is almost always considered an exempt asset. In some cases, a portion of your 401(k) may be taken to pay back your debt, but in most cases, your 401(k) is secure in a credit card bankruptcy.
Car or automobile
Many individuals mistakenly believe that their vehicle will not be regarded an exempt asset. The procedure is intricate, but the court will compare the blue book value of your vehicle to a value established by each state. If it is less, you may be able to keep your vehicle.
Telephone messages and other forms of harassment.
Those who owe money have likely encountered these. Constant calls are made to your residence and place of business in an effort to ""collect"" money you owe. If it lasts long enough, it can have serious consequences for your existence. After filing for credit card bankruptcy, you are 100 percent protected by an automatic stay. This means no more phone inquiries or mail. If they continue to call, you have the legal right to file a lawsuit against them.
Obtaining bankruptcy assistance is the one thing that should never be played around with. With the proper assistance, you will be able to escape crippling debt and get your life back on track.""
" - https://www.affordablecebu.com/