Categorized | Financial

Navigating Bankruptcy

If you feel as if you have too much credit card debt to deal with, you might want to consider filing for bankruptcy. In order to file for bankruptcy, there are quite a few things that you will need. For example, you will need to have your tax return information from the past three years. In addition, you will need your bankruptcy counseling certificate, pay stubs, vehicle valuation statement, insurance declarations pages, credit reports, your social security card and your driver’s license. When you file for bankruptcy, most of your debt will be eliminated. However, there will still be some financial obligations that you will have to pay for. For example, you will still need to pay for any student loans, child support and alimony that you might have.

Applying for Bankruptcy

In order to apply for bankruptcy, you have to make sure that you are eligible to do so. Whether or not you are eligible for bankruptcy will be based on your current financial situation. For example, if you are still able to obtain a steady income, you might not be able to apply for bankruptcy. In addition, if you can still make small payments to your creditors every month in order to help lower your debt, you will not be able to file for bankruptcy. If you are eligible, it might be a good idea for you to look into getting the help of a Covington bankruptcy attorney. Bankruptcy is an extremely complicated process and having the help of a bankruptcy attorney can make things a little easier for you.

Types of Bankruptcy

There are different types of bankruptcy that can be filed and each one is designed for specific financial situations. It is important for you to choose the type that can best suit your needs. A Chapter 7 bankruptcy is designed to get rid of most of the debt that you owe. However, when you file for a Chapter 7 bankruptcy you will not be able to spend money on various items that you do not need. This might include satellite television or Internet. You also have the option of filing for a Chapter 13 bankruptcy. This type of bankruptcy is designed to help you pay off your debts instead of eliminating them. With this type of bankruptcy, you will be able to pay off your debt with a plan that lasts between three and five years. A Chapter 11 bankruptcy is designed for men and women with various properties and holdings.

Filing for Bankruptcy

You can file for bankruptcy by visiting the nearest bankruptcy court. You will need to have the necessary financial documents and proof of your identification. Once you have become qualified for bankruptcy you will need to obtain credit counseling before actually filing.

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