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Things you should know before you file bankruptcy |
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| If you are thinking about filing bankruptcy, there are a few things you need to know beforehand. Your credit will go down the tubes for the next seven to ten years. If you are seriously thinking about filing though, your credit might already be on the down slide. You will need to contact a lawyer that specializes in bankruptcy law. You will also need to be able to prove with financial statements that you cannot pay your debts. You will need to list all your assets and obligations. Proof of income is required. A list of all your creditors and their addresses and the amount owed is also required. The amount of debt that you have, and the amount of income you earn will determine which chapter you will be able to file. Chapter 7 will allow you to get rid of most of your debt. You will most likely be able to keep your home and vehicle and any debt that you want to reaffirm. Chapter 13 means that you have sufficient income to pay back your creditors at a reduced rate which is determined by the bankruptcy court. This usually happens over a period of five years. You will have to make an appearance in bankruptcy court with your lawyer, and swear under oath that your position is accurate and true. If you are filing chapter 7, in a few weeks you will receive notice that your debts have been discharged if all goes well. | |
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