It is not unusual in this life to fall into financial hardship. But before you file for bankruptcy, it's important to arm yourself with facts so that you know what you are getting into.
When you file for bankruptcy, your property is handed over to a bankruptcy trustee who handles your assets on behalf of your creditors.
What happens then? Do you lose all your property or do you get to keep part of it?
Facing foreclosure is stressful enough, but depending on the state you live in, you may not even get a date in court in order to defend yourself. This is possible in states that allow for a non-judicial foreclosure, which is over half of the states in the country. But it's not just the type of foreclosure favored and allowed in the state, but also what's written in the mortgage paperwork you signed when purchasing the home.
Considering bankruptcy is an option you have if you are struggling with so much debt you do not know where to turn, and visiting with a bankruptcy lawyer is a great way to learn more about the process. When you visit with an attorney, you will not be obligated to file for bankruptcy, which is good to know, but it will help you understand whether it is the right option for you.
When you file for bankruptcy, you give the Federal bankruptcy courts authorization to look at every aspect of your financial records, including bank accounts, credit accounts, and property you own. Once the courts are satisfied that everything is in order and your creditors have received adequate time to request payment, your bankruptcy will be discharged. When that happens, your debts will either be forgiven or you'll enter into repayment status, depending on which chapter you filed under.
The purpose of bankruptcy is to get a fresh start financially; however, this is not something you can do for free. There are fees to file for bankruptcy, and you will need to pay some of these fees even if you decide to file without the help of a lawyer. Here is a breakdown of the fees you should expect to pay if you go through with this. It's important to know how much this will cost so that you can plan for it and have the money saved up before you file.