According to the Bankruptcy Institute, there were 87,684 bankruptcy filings in the United States in July of 2013. The top three states with the most bankruptcy filings were Arizona, California, and Nevada in 2012. With these numbers in mind, you may be asking when should you file for bankruptcy if you are having difficulty paying your debts.
Determining when should you file for bankruptcy, you may find yourself in a difficult situation, both financially and emotionally. However, if you do find that you are facing those questions of when should you file for bankruptcy, you should take a look at these facts about bankruptcy.
There are two common types of personal bankruptcy, and you need to decide which one will be best for you. The first is Chapter 7 is the most common and is also known as liquidation bankruptcy, because some of your assets will be turned over to a court appointed trustee. This assets will be then sold or liquidated to pay some of the outstanding debts. When determining when should you file for bankruptcy, you should understand that under Chapter Seven bankruptcy laws, certain property is exempt from liquidation. For instance, Chapter 7 bankruptcy information states that in California you are allowed to keep $75,000 to $125,000 in home equity prior to liquidation.
You may also consider Chapter 13 bankruptcy rules when questioning when should you file for bankruptcy. This type of bankruptcy is considered a reorganization whereby a debtor can pay back some or all of the debt over time.
You may also want to consult with a bankruptcy attorney about the questions surrounding when should you file for bankruptcy and how to file a bankruptcy. This professional can discuss all of your options, as well as the bankruptcy process. You can determine if you should file Chapter 7 or Chapter 13 bankruptcy and when should you file for bankruptcy.
You may be asking about your credit score and when should you file of bankruptcy. Obviously, your credit rating will be affected during and after a bankruptcy; however, your score was probably already affected by the financial difficulties you experienced.
When should you file for bankruptcy can be assisted with the help of professionals who can guide you through the entire process to the resolution of the bankruptcy.
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