Before you make the final decision to file for bankruptcy, you should be aware of all the court bankruptcy forms that need to be filled out in order to complete the process. More and more families are turning to bankruptcy these days due to the failing economy and the tremendous number of layoffs that are taking place. However, you should know that bankruptcy should be your absolute last option–if you are able to consolidate your debt and make payments that will fit within your financial means, most attorneys and financial professionals will encourage you to do so.
At the end of 2008, there was an over 50 percent increase in the amount of people that filed for bankruptcy. And, President Obama stated in February that the rising health care costs contribute to what has caused a bankruptcy to occur in the U.S. every 30 seconds. So, before you file, you should know which court bankruptcy forms are best for you. If you are filing for Chapter 7 bankruptcy, it means that you are allowing a number of unsecured debts to be eliminated, and this will give you a fresh financial start after the bankruptcy period is over. Chapter 7 is also ideal for people who don’t have a lot of equity in real estate, or are not making enough money to settle all the debts they have incurred. However, you should be aware that items like recent taxes, student loans, and child support payments may not be covered under this chapter.
If you’re filling out a court bankruptcy form for Chapter 13, this means that you are allowing your debt to be organized properly. Chapter 13 has helped a number of homeowners to avoid foreclosure, and gives them a chance to make ends meet while they are fulfilling other financial obligations and trying to make mortgage payments online. Filling out court bankruptcy forms for Chapter 13 bankruptcy is a good idea for people that have a steady stream of income, but have a number of debts to settle. Families that file for this method are placed on a strategic payment plan, and this usually lasts between three and five years. There is no contract with creditors, and one monthly payment is made to a bankruptcy trustee.
After you’ve completed the court bankruptcy forms, the court will issue an automatic stay after your petition is filed. This protects you from any further action on the part of your creditors, and stops processes like foreclosure, repossession, wage garnishment, and utility shutoff. This allows you and your family to continue living somewhat of a normal life while you are getting your finances in order. This is offered for both Chapter 7 and Chapter 13 bankruptcy.Mail this post