Whenever someone is thinking of filing bankruptcy, a good place to start learning about bankruptcy is the bankruptcy FAQ. A bankruptcy FAQ usually outlines basics information about how to file bankruptcy, different types of bankruptcy such as chapter 7 bankruptcy or chapter 13 bankruptcy as well as common questions that people ask about the subject.
The first question that comes to people’s mind on the subject of bankruptcy and often the first question in a bankruptcy FAQ is how to file bankruptcy. Knowing how to file bankruptcy properly will avoid many problems that can result on a legal standpoint. The first step of filing bankruptcy is to file a petition and then pay all the needed fees such as administrative fees and the filing fee.
There are more than one type of bankruptcy to file. Any good bankruptcy FAQ will start with distinguishing between different types of bankruptcy such as chapter 7, chapter 13, chapter 11 and chapter 12 bankruptcy. A person seeking to file bankruptcy needs to know in detail what type of bankruptcy is the best for his/her situation.
Most people consider filing chapter 7 bankruptcy first and foremost because they have been told that chapter 7 bankruptcy eliminates most of the debts. However, the new bankruptcy laws have made it more difficult to file chapter 7 bankruptcy. Added to the fact that many people want to keep some assets, they opt for filing for another type of bankruptcy.
Chapter 13 bankruptcy is often the highlight of a bankruptcy FAQ because it is the most common type of bankruptcy filed nowadays. In a chapter 13 bankruptcy, debtor filing chapter 13 comes up with a repayment plan that the court approves to pay off most of the debts to the creditors. Some debts are discharged but most are not.
The cost of filing bankruptcy is also one of the most common question in any bankruptcy FAQ. It generally costs only a couple hundred dollars to file bankruptcy including the court fees and administrative expenses. However, many people hire a bankruptcy lawyer to help them therefore increasing the cost of filing many fold.
Different types of debts are discharged differently. It also depends on the type of bankruptcy filed. The bankruptcy laws have so many provisions and interpretations and each debt is considered separately. A bankruptcy lawyer can help you interpret if a debt will be discharged by the filing or not.
There are so many questions about bankruptcy that a person seeking to file bankruptcy needs to know. A bankruptcy FAQ should give an overview of filing bankruptcy as well as answers important questions that most people have encountered. Do not file bankruptcy if you have other options.
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