Claiming Bankruptcy is a very serious prospect. This means you have over extended yourself and dug a hole where there is no rebounding from. How to Declare Bankruptcy should start with an appointment with an attorney who specializes in this type of action. From him you will learn what your next step should be. At the very least you will learn about the Types of Bankruptcy and how to proceed.
If you are a homeowner, one option to look at would be securing a loan from the bank called a home equity loan. This might be all you need to bring your debt under manageable control. The interest rate in this type of loan is usually lower and does not need to be paid back for ten years. Before Claiming Bankruptcy have you communicated with any of your creditors? Many will be willing to lower an interest rates. It is well worth them to work with the public rather than risk getting nothing in a bankruptcy.
Chapter 13 bankruptcy does not discharge all debts. Typically people who file for this type of bankruptcy have always paid their bills. They could have fallen behind on bills by the loss of a job, a death in the family or medical bills that are daunting. In this arrangement, a form is filed with the court. In addition, the court will want to know the dollar value and type of assets you have. All monies owed and to who will need to be listed. You will have to list your monthly income. A budget of your expenditures for needs to be detailed, rent, clothes, food, etc. This type of bankruptcy is handled by the court and creditors cannot pile on the interest or harass you in anyway for three years.
Chapter 7 bankruptcy requires no payment to creditors. If you qualify for this type of bankruptcy, the money you owe will disappear. A test called, the Means Test, will have to be taken to determine if you qualify. Six months of income will be looked at and compared with others in your state. If you fall below you are given a green light, if you do not qualify they you do not get to file for Chapter 7 bankruptcy.
