{"id":37072,"date":"2019-09-15T08:06:55","date_gmt":"2019-09-15T07:06:55","guid":{"rendered":"https:\/\/www.elcrema.com\/?p=37072"},"modified":"2019-09-15T08:07:01","modified_gmt":"2019-09-15T07:07:01","slug":"filing-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.elcrema.com\/filing-for-bankruptcy\/","title":{"rendered":"5 Things to Know Before Filing for Bankruptcy"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Filing for bankruptcy is not an easy life or\nfinancial decision. Whatever the circumstances that led up to this point, it\nmay be even harder to reach the decision to officially file. Even though the\nnumber of cases has decreased over the past 20 years<\/a>, it\u2019s\nstill a hard decision for many individuals. <\/p>\n\n\n\n

While many people may be familiar with\nbankruptcy, the majority may not know what it entails or what the consequences\nare. We all probably know it\u2019s much more than simply shouting it to everyone, a\nla Michael Scott from The Office<\/em>. <\/p>\n\n\n\n

But if you\u2019re thinking about filing, here are\nsome things you should know before making it official. <\/p>\n\n\n\n

There Are Different Types of\nBankruptcy<\/h1>\n\n\n\n

Unfortunately, there is no blanket bankruptcy\nyou can use for any and all situations. But rest assured, there are only two\nthat are quite common. <\/p>\n\n\n\n

Chapter\n7<\/strong><\/p>\n\n\n\n

With a process lasting about 3-4 months,\nChapter 7 is also referred to as \u201cliquidation\u201d bankruptcy. With Chapter 7, you\ncan discharge (clear) some of what you owe, like outstanding credit card\npayments or loans. <\/p>\n\n\n\n

It\u2019s the best option for those wanting a clean\nslate and fresh start. That\u2019s not to say it\u2019s pain-free, many Chapter 7 filers\nmust sell many of their assets and your credit could be doomed. <\/p>\n\n\n\n

Chapter\n13<\/strong><\/p>\n\n\n\n

Also known as the repayment or reorganization\nform of bankruptcy, this form of filing will let you set up a repayment plan\nand you\u2019ll have to pay back your debts over time. You won\u2019t be required to sell\nanything, but the process can take much, much longer.<\/p>\n\n\n\n

You\u2019ll be making monthly payments for years in\nan effort to pay everything off.<\/p>\n\n\n\n

Other\nTypes<\/strong><\/p>\n\n\n\n

There are other forms of bankruptcy, but they\nsometimes only apply to certain people in certain professions or very specific\ncircumstances. In this case, it\u2019s best to hire a lawyer<\/a> who can walk you through\nthe steps and find the best option for you. <\/p>\n\n\n\n

Not All Debts Can be Cleared<\/h1>\n\n\n\n

Unfortunately, bankruptcy doesn\u2019t clear you\nfrom all your debts. Before the negative, let\u2019s focus on what debts can<\/em> be cleared. These include:<\/p>\n\n\n\n