Simple steps- filing for bankruptcy
Filling for bankruptcy can be very intimidating. There are a lot of misconceptions and assumptions made about filing for bankruptcy, and the process it entails. While for many people considering bankruptcy there are feelings of shame and embarrassment, the truth of the matter is that many many people file for bankruptcy, and the laws exist to be taken advantage of. Bankruptcy exists so that an indebted individual can have an exit strategy. The first step to filing for bankruptcy is to take a means test, which tests your eligibility for filing Chapter 7, the most popular form of bankruptcy.
Whether or not to file bankruptcy is a difficult decision to make. It’s a process fraught with the fears of losing all your possessions, mixed with the hope brought on by a fresh financial start. Laws and regulations regarding the finer points of filing for bankruptcy differ from state to state. However, there are a few standard types of bankruptcy. The most commonly heard of is Chapter 11, which is typically for business owners, and therefore makes more headlines. Chapter 12 is specifically for family farmers with debt problems, while Chapter 13 is for individuals and married couples who wish to reorganize their debts. Keeping this in mind, different rules apply for each type of bankruptcy.
Exemptions include statutory lists of the types and values of property that is lawfully outside the reach of the bankruptcy trustee or creditors. For every bankruptcy, a debtor may select property from the statutory lists of exemptions provided under state law, and that property cannot be repossessed in the process of the bankruptcy.
