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Finding yourself overwhelmed with debt and having a tough time meeting your financial obligations might lead you to consider that you must file personal bankruptcy. Prior to making this type of big determination, you need to know and understand numerous facts about the bankruptcy process and other choices that are possible. There are two primary types of personal bankruptcy filings. Chapter 7 is a complete debt erasure bankruptcy and Chapter 13 which is a reorganization bankruptcy. Each type of bankruptcy has its own procedures and outcome. One of the things that is essential to notice is that it is not your determination as to which chapter you file. Of course, most individuals would prefer to file chapter 7 and have their financial obligations just disappear, but the court makes that determination, not you, dependent on how your financial position is shown to the courts. It is for this primary reason that it is unquestionably to your gain to have a qualified lawyer handle your bankruptcy process, if you elect to go forward with it, since they are familiar with what the courts want to see in your paperwork. Chapter 7 is a complete elimination of debt by the court system. You must file all your current bills with the court and if you are awarded a bankruptcy, all your financial obligations will be erased. It sounds good, but it is not. When you file this type of bankruptcy the court will nominate a clerk to you who will look into all your assets and income. They will carefully catalog all your personal property and they, not you, will decide what must be sold to repay some or all of your debts before going to the proceedings. Each state has individual laws that determine the value of personal property you are allowed to keep. The numbers can be as low as $1200.00 and this will include things such as your wedding rings and family heirlooms. You must also be conscious that there are some types of debt which cannot be erased by bankruptcy. Chapter 13 bankruptcy is very much likened to chapter 7. The deviation is that in this type of filling you are trying to make new arrangements with your creditors for repayment. Many individuals who file reorganization bankruptcy are doing it so they can keep their home. The court will appoint a clerk to this type of case as well. They will find any property or assets to be sold to pay your unsecured debt and they will measure your debt to income ratio. This person will combine your debts and determine a monthly payment amount that is needed to handle your debts. You will have to pay the court this sum every month to cover your debts if awarded the bankruptcy. The court will not take anything except repayment into consideration when they determine this amount. There are other options that you should look into to assist you to solve your debt problems. You must be very conscious of all the issues that are related with personal bankruptcy. Bankruptcy will demolish your credit for many years and the outcome of the debt forgiveness could in reality be harder than the problems you are having now. You should not make any moves until you know exactly where you are financially and what all of your options are. Very few people really understand what options they have, and there are quite a few. For more insights and additional information about filing Personal Bankruptcy as well as getting a free bankruptcy evaluation from a qualified lawyer, please visit our web site at http://www.bankruptcy-data.com
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