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The Process of Bankruptcy

With the economic troubles of the last few years, there are more people struggling with their funds than ever before. In many scenarios, people have gone through their financial savings account and run up their credit cards. The plan was probably to get a new job and increase their income to be able to pay off those credit card bills. However, in many instances, this hasn't happened soon enough. Regardless of what got you into a position of getting more debt than you can pay back, there are choices offered to you.

Filing for tampa bankruptcy is an choice that is obtainable if you have a large amount of unsecured debt that you can't find the money for. normally, the process gets going by speaking with an lawyer to go over your funds. You will have to list all of your assets and all of your bills. Upon reviewing your individual situation, the lawyer will advocate whether or not bankruptcy is an choice for you. If it is, they will help you to choose amongst the two types of bankruptcy.

There are several different types of bankruptcy, but Chapter 7 and Chapter 13 are the ones most often used by individuals. Chapter 7 is identified as a straight bankruptcy case. If you elect to file for Chapter 13, you will be put on a restructuring plan. In this case, you will make partial payments for several years before the remainder of the amount is eliminated.

In most scenarios, you will be allowed to protect certain assets. These typically involve your home, car and retirement benefits. The fact that you know your home won't be taken away is a big consolation to people who are falling behind on their credit card payments. You should speak to an attorney however, if you have amount of equity built up in your home or high-end car to see if this will affect your case.

It will take several months for the bankruptcy process to complete after you file your papers. However, for the duration of this time, your creditors are not allowed to contact you. If the bankruptcy is approved, all of your unsecured debt will be eliminated and you will no longer be required to pay back the balance on your credit score card or other unsecured payments.

You should think very carefully before making the decision to file for bankruptcy. It will have a dramatic influence on your future for the next 7 - 10 years until it is removed from your record. for the duration of this time, you will probably have difficulty getting new credit score cards. Any new cards you get will likely have very large interest charges on them. You will also probably have trouble getting loans for a car or a house house. If you have enough of a down payment and income to be approved for a loan, you will still pay very high interest rates.

If you are struggling with overwhelming credit score card debt, the 1st point you should do is see an attorney. They will be able to explain the alternatives that you have. If bankruptcy is your best choice, it will have short term implications for your credit score, but it can also give you the opportunity to start over with your finances.