Filing personal bankruptcy is a means for individuals that need a way to reduce their debt and stop collections and garnishments. If you have any amount of debt in excess of $10,000, a possible resource would be to speak with a counselor about consolidating all your bills and making payments, or you can also potentially choose to talk to a bankruptcy lawyer about what type of bankruptcy you can file. Your secured debt and your income is generally a factor in what chapter bankruptcy you should file. If you have secured debt that you want to keep, such as a house, filing chapter 13 to save the house may be a good idea.
Personal bankruptcy works differently with each of the three chapters that you can file under when the time comes. Chapter 7 is designed to discharge all debts without a repayment plan. A chapter 13 is designed to offer a repayment plan for a secured debt first and then unsecured debt secondly. Chapter 12 is designed to be the same as chapter 13, but it is for family farmers.
If you file personal bankruptcy chapter 13, which usually requires a repayment plan, your payments are reported to the credit reporting agencies. Your credit history should show the amount of payments made, which creditors were paid and if you completed your repayment plan as required. If you do choose to file personal bankruptcy, you can choose to check with your credit reporting agency to make sure they are recording the correct bankruptcy information.
Some people wonder if they can lose their jobs because of the bankruptcy. If you are a bonded employee, this could potentially cause problems, but any other jobs most likely will not be in jeopardy. If you are discharged from a job because of a personal bankruptcy, you may choose to talk with the HR department and see what they can do.
Also, be sure to read about the latest bankruptcy news.
