What is Bankruptcy?
Now what is Bankruptcy…..Bankruptcy is a legal process through which the helpless debtors can get relief from the creditors. As soon as you file Bankruptcy, the creditor will have to stop to harass you for making you pay.
This process is taken care under the Federal Court. After filing the Bankruptcy you can start anew and all your unsecured debts will be eliminated. There are different types of Bankruptcy that you can file according to your situation. Chanpter7 and chapter13 are the most common from of bankruptcy.
If you file Chapter-7 Bankruptcy, then all your un-exempt properties will be sold to pay the creditors and this will hurt your credit score hugely. So this is really the last option for a debt to file Chapter-7. You may not even get a loan for 7 to1 0 years after filling the chapter-7 bankruptcy.
If you can file Chapter-13 bankruptcy then you can keep all your properties but you will have to pay off your creditor with an affordable repayment plan. Chapter-13 hurts your credit score lesser than chapter-7 bankruptcy.
So if it seems that you cannot make payments to your creditors and they are harassing you for making the payments then you should contact an attorney to check out whether you can file Bankruptcy or not and even if you can file, which is the most suited type for bankruptcy for your situation.
If you are trying to file bankruptcy then it is always better to take help from an bankruptcy attorney.