Chapter 7 Bankruptcy And Debt Relief Qualification Facts

When people are so deep into debts and they have absolutely no chance of paying them off then as a last resort they file for bankruptcy. However this is often considered a taboo subject and there are many misconceptions floating around. Some of the myths associated with bankruptcy are:

Chapter 7 bankruptcy will probably be best for you if you have very little extra money after you pay your living expenses, if you can even pay these monthly expenses at all. This choice will allow most unsecured debts to be discharged, it is a fairly quick process and the creditors cannot contact you once the automatic stay is in effect. You will need to qualify in order to file a chapter 7 and have a pre-filing session with a credit counselor.

We see it on TV, in the newspaper, and sometimes it happens to family and friends, but what does it really mean to file for bankruptcy? First of all, there isn't just one type of bankruptcy that you can file for. In fact, there are six different types that apply to various different situations, though only chapters 7, 11, 12, and 13 apply to the general public. Chapters 9 and 15 apply to municipalities and specific state jurisdictions. These four different kinds of bankruptcy were designed by the government to help people get out of debt. Some chapters, such as 7 and 13, may be applied for by almost anyone, while other chapters, such as 12, are more specific as they only apply to farmers and fishermen.

You need to ask questions about his experience and how much case he has effectively handled before taking your case and in how many cases he got success. You need to ask some questions regarding chapter 7, chapter 11, chapter 12 and chapter 13 bankruptcy laws. Which will give you confidence that you are working with a experienced lawyer who can resolve my bankruptcy problem.

As you see, there are downsides to both debt elimination plans. One of the biggest downside is that both debt erase plans will significantly impact a person's credit rate. For this reason, declaring yourself bankrupt is a solution of your debt problems that should be evaluated very thoroughly and carefully. Other debt solutions like debt negotiation, debt counselling and debt consolidation should definitely be considered first.

The fee for your bankruptcy attorney will vary depending upon how complicated your particular case is and what it involves. Across the United States, the fee for filing bankruptcy with the courts is generally around $200 for a chapter 7 filing and $190 for a chapter 13. One thing you should know is that a judge in bankruptcy court must approve any attorney fee. The typical costs of attorney fees start at around $500 and up.

• Not all debt is forgiven: There are certain kinds of debt that will not be erased no matter your circumstances or ability to repay. These types of debt include student and other government loans, back taxes, alimony, and child support.