If you ever feel like you need to declare bankruptcy, then you should probably make sure to hire a bankruptcy attorney. Before you get started with an attorney, however, let’s look at some of the basics of bankruptcy. First of all, what is bankruptcy? Bankruptcy is a code of laws that allows people to get a fresh start if they have too much debt.
There are two sections that most people usually file bankruptcy under. The two sections are chapter seven and chapter thirteen. Chapter seven bankruptcy is very short and lasts no more than 120 days. Under chapter seven some of your debt can be eliminated, and you will never have to worry about it again. Chapter thirteen is more focused on debt repayment and is used more by people who have sources of regular income. Under Chapter thirteen you can keep ownership of your home and you will set up a future repayment plan with your creditors.
Overall, bankruptcy is something that you want to avoid and there are a few ways that you can do that. One way to avoid bankruptcy is by setting up a budget so that you can keep track of your spending.