Will Filing for bankruptcy Leave Me Homeless and Broke for Years?

Bankruptcy involves filing fees and attorney fees, and many people do not have the money to cover those fees, therefore they cannot go through the process. Each individual financial situation is different, and depending on it, you will view bankruptcy as the last resort, the end, or you will view it as a fresh start and a new beginning. It seems that people who worked hard to keep perfect credit scores and whose scores are suffering now due to the effects of hardship and life circumstances feel the worst about bankruptcy. However, depending on the type of bankruptcy that you qualify for, and how many possessions you have, you will feel the impact of the bankruptcy procedures more or less. This is because if you qualify for Chapter 7 bankruptcy, you will have to liquidate many assets in order to repay unsecured creditors. If you have many valuable possessions, this may hurt you more. On the other hand, if you qualify for Chapter 13 bankruptcy, you will get to keep your assets and will be put on a payment plan to repay your debt in about five years - this happens when you have an income and cannot claim chapter 7 insolvency. In the case of wanting to keep many of your assets, Chapter 13 benefits an individual. Depending on the type of bankruptcy you fill, the process will affect what you keep and if you are allowed to stay in your home and catch up on your mortgage payments. In addition, not all debt is discharged in bankruptcy; some debts will still be there. However, for many, bankruptcy will stop foreclosure, and allows them to stay in their homes. As long as you have an income, you will be able to repay your debt in five years and start fresh. However, Chapter 7 does not stop foreclosure, and a person may lose their home.

Bankruptcy law is complex and that is why you need a lawyer on your side that can help you through all the paperwork and negotiations. This is why there is a fee and attorney fees, the price to pay for navigating these turbulent waters with expert help. Only a lawyer can help you understand what type of bankruptcy you qualify for and explain the risk and the benefits for you according to your financial situation - however, the lawyer will answer according to the information he/she is getting from you; therefore, it is important to show a true picture and not hide information that will affect you in the future. Chapter 7 bankruptcy stays in the record of the individual for 10 years and Chapter 13, for 7 years.

There are negative effects to any type of bankruptcy, and in general, bankruptcy is recommended as a final resort. As it negatively affects your FICO score, you will be limited in the things that you can do such as renting a good place to live, getting loans, buying a car, getting a cell phone, buying a home, getting low interest rates - and other things that maybe you took for granted before bankruptcy. If you have to go through bankruptcy, consult a good lawyer, and start rebuilding your credit as soon as possible. For more information on this topic visit restartcentral.com.