There are times when individuals and businesses face financial difficulties. One of the key contributors to financial difficulties is debt. Whenever a person or businesses gets into a certain amount of debt, they will often look for ways to manage it more easily. While they can use options such as debt consolidation, enroll in a debt settlement program or negotiate with their creditors, bankruptcy is often the ideal solution. When you file for bankruptcy, you will be in position to either eliminate or restructure your debt. With this arrangement, you will be in position to handle your debt situation more easily and give yourself a fresh start financially.


Whenever and individual or business is looking to address their finances, they will need to know why they will want to file. There are a number of reasons to file. One of the main reasons to file is to get a complete discharge of debts. With some filing options, you can opt to have all of your debts eliminated. This will allow you to get rid of the debt and never have to worry about paying it back. Another reason to file is to restructure some current debt. Instead of making payments that are not affordable, you can make an arrangement with the court to pay off your debts on more affordable terms. People also file because it can allow them to keep valuable assets such as their house, vehicle and other property.


In order to file, you will need to have certain things that include documentation of your finances. One of the things that you will need in order to file is an attorney. While you can file by yourself, it is much better to use an attorney who specializes in this. They will provide you with the advice, feedback and assistance you need in order to file properly. You will also need to have tax returns and documents that show your income such as paycheck stubs. Another thing that you will need in order to file is documentation showing all of your assets. This will include the value of your bank accounts, investment portfolio, real estate and vehicles. It will also be important to have documentation of the debts you owe as well.


Applying takes a few steps. First, you will need to fill out some forms where you reveal your personal information such as your name, social security number, date of birth and the filing option that you want to go with. You will then need to submit the documentation to the court for consideration. This documentation will reveal all of assets and liabilities that you currently have. Upon approval, you will get a petition. After receiving the petition, you will then need to work with a trustee who will evaluate your finances and the assets that you have. Once this step is completed, you will then wait for the decision. If approved, you will either discharge or restructure your debt payment obligations.


When it comes to the available options, there are two that you should keep in mind. The first option is a Chapter 7 where you are able to get a complete discharge of your debts. Depending on the type of assets you have, you will either get a full discharge or go through a liquidation process. With liquidation, you will need to sell your non exempt property such as collectibles, real estate and vehicles to satisfy the debts you owe. With a Chapter 13, you restructure your debts with the court so that you can have more affordable payments. This option is usually chosen if you have an income and assets such as a house.

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