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Declaring bankruptcy is a serious undertaking, and one that should always be disccused with a professional. Note that you cannot file for bankruptcy on student debt. Declaring bankruptcy will have dramatic effects on your credit moving forwards in life.
There are 6 important chapters of bankruptcy—chapter 7, chapter 9, chapter 11, chapter 12, chapter 13, and chapter 15. Personal bankruptcy, involves filing for either chapter 7, or chapter 13, the other chapters are reserved for businesses or other organizations.
Before you file for bankruptcy, you should have already tried everything. Your debt must be at the point at which it is completely unmanageable and you might never be able to pay it off. Things like debt consolidation, refinancing, settlement, should all be attempted as a prelude to even thinking about declaring bankruptcy.
Bankruptcy: Chapter 7
Meet with a professional for a consultation. Then file the initial documents.
Next, meet with your case trustee. Talk about the info that you provided during your filing. Oftentimes tehy will have many questions and concerns, butcause it is up to them to handle and creditors that filed a claim. If there are any liens that you want to get rid of before the bankruptcy case is closed, you should do so now.
You must handle any secured debts that you have – as this is something that you agreed to on a form that you were giving during the intial filing. After this, you will have pay back the debts listed here, but all ofther dischargeable debts will be eliminated. The creditors will no longer have a legal right to your payments, and you will no longer have a legal obligation to pay them back.
Bankruptcy: Chapter 13
If you’re filing for chapter thirteen, it can be very different than a chapter Seven filing. You need to first create and submit a payment plan which tells how you will pay back most or all of hte debt. Then you will goto a meeting with your case trustee (your creditors may be here as well). At this meeting you will go through paperwork, and negoitiate with the creditors.
Next, you will goto a hearing where the judge will decide to confirm or deny your plan. Creditors have the right to place objections, of which the judge will rule to sustain or deny these objections. From here on out, you will have to follow your repayment plan, and when you complete the plan, the court will issue a discharge order, which will get rid of the rest of your remaining dischargeable debt.
Declaring Bankruptcy Conclusion
You will finally be debt free once you declare bankruptcy and pay off the payment plans. Take care not to put yourself in this situation again! Realize that declaring bankruptcy has serious, long lasting credit implications. Deciding how to declare bankruptcy is a topic that should be discussed with a debtors rights lawyer.

Declaring bankruptcy isn’t too hard or difficult, but it isn’t the easiest tasks either. When you take the the time to learn how doing it properly so that you get the maximimum amount of debt relief potential, you will begin to start at zero, and can take the steps necessary to securing your financial safety net. More: http://financialsafety.net/