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When you are thinking about filing bankruptcy there are many things that you need to think about. It is not a decision that should be taken lightly as it can negatively affect your life in a number of ways. So many people see bankruptcy as an easy way out of their debt problems, when in fact it can sometimes make their lives worse. Before filing bankruptcy, it is important that you take the time to understand a little more about it. Do you know how it will affect your life? Do you know what the process involves and what you will still have to pay if anything? There are two main types of bankruptcy and those are Chapter 13 bankruptcy and Chapter 7 bankruptcy. If you are aiming to eliminate all of your debts then you will need to file for Chapter 7. However, if you choose this option, it will have a negative effect on your credit report. It will make it more difficult to find credit in the future; including getting a mortgage and it will stay on your report for seven to ten years. Chapter 13 bankruptcy is more like a payment plan where you repay your debts over a period of time. This will still have an effect on your credit report but it will look more favorable to creditors in the future. It makes your debts much more manageable but it does not wipe them out. It is always advisable to look at all other alternatives before filing bankruptcy. Have you looked into debt consolidation or debt management? Are there other options that you have not yet investigated thoroughly? Look at every possible alternative as bankruptcy should always be a last resort. Depending on what types of debt you have, you need to know there are certain kinds of debt that bankruptcy cannot discharge. For example, if a big percentage of your outstanding debt is composed of things like tax liens or student loans, those items are not wiped out via any chapter of bankruptcy. If you do have to file for bankruptcy then it would be a good idea to seek professional help in the form of a bankruptcy lawyer. They will be able to help you through the process and advise you of how to file for bankruptcy and the things that you need, as well as analyzing your situation to see if another option is better for you. As new bankruptcy laws have been unveiled, it is now quite a complicated procedure filing bankruptcy and so it would be safer to leave the process to a trained professional. Many people who have filed in the past said that they saved much more than the attorney's fees in terms of what they were able to keep and retain, compared to if they had tried to do it themselves. Overall, it might seem like a quick fix or an easy option to get you out of debt. However, you could still end up losing your home if you have secured a loan on the property. It would go on your credit report and stay there for up to ten years. You would have extreme difficulties getting the credit that you need and generally, your life will be harder. So before filing bankruptcy always ensure that you have considered all of the possible alternatives first! For more insights and additional information about things you should know before Filing Bankruptcy as well as getting a free bankruptcy evaluation from a qualified bankruptcy lawyer in your area, please visit our web site at http://www.bankruptcy-data.com
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