Claiming Bankruptcy

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Claiming bankruptcy is a procedure that you must not indulge into unless you cannot do without it.
Bankruptcy is going to be mentioned on your credit report for say 10 years and it may make it difficult sometimes to buy anything based on credit or sometimes even finding jobs.
A lot of time claiming bankruptcy is also costly.
The cost of filing bankruptcy may go up to $1700 including the paperwork and court fees.
If you are hiring an attorney, you will also have to add his fees.
The first important step that you need to take before filing bankruptcy is getting a lawyer.
You can either get this lawyer by recommendation or find out a good bankruptcy lawyer from Yellow Pages.
Fix an appointment and find out if the lawyer suits you.
Ask the lawyer to proceed with your case and assist you n filing bankruptcy.
The second step is determining which kind of bankruptcy you need to file.
The most commonly file bankruptcies are under Chapter 7, chapter 13 and chapter 11.
A lot of people file bankruptcy under Chapter 7 that is generally based on dismissal entire debt but there is always a chance that the liquid properties of the Debtor will get seized.
Chapter 11 of bankruptcy law caters to corporations and companies but at times individuals also use the same.
Chapter 11 of bankruptcy law can help in saving a person from foreclosure of his house by recognizing payments and asking for a fresh start.
In case of companies and corporations, they have to prove how much they're making in comparison to how much they owe to the market.
It is up to court to decide if the company qualifies to pay back or not.
Under Chapter 13 of bankruptcy laws, bank asks the debtor to pay a percentage of the paychecks to the creditors in order to help in paying back what is owed.
Although a lot of amount is paid of and the time period to pay back the loan is also increased.
Under whichever chapters you file bankruptcy; you will need to arrange for funds in order to pay for attorney fee and court fees.
It may become costly for you and therefore it is unfortunate that you take time to fix out the debts before choosing for the last option that is filing personal bankruptcy.
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