Have you thought about bankruptcy? Maybe you have too much debt and find yourself struggling to make payments. Perhaps you worry about making your house payment due to unsecured debt. Whatever your circumstance, there are ways that you can file for personal bankruptcy without worrying about losing your home.
When it comes to Chapter 13 bankruptcy, according to Forbes, you may be able to keep many of your important assets. If you want to keep your home, for instance, you need to stay on top of your mortgage payments. In addition, you would need to stay on top of your repayment plan.
You repay three main debts:
- Priority debt
- Secured debt
- Unsecured debt
Keep in mind that this process will take longer than Chapter 7 bankruptcy. The main difference is that the bankruptcy will stay on your record for only seven years. When you file Chapter 7, it remains on your report for 10 years.
With Chapter 7, bankruptcy on the other hand, you can still keep your home. Instead of a repayment plan, you would lose all of your unsecured debt. This includes:
- Some taxes
- Credit card debts
- Check advances
- Hospital bills
- Personal loans
- Lawsuit judgments
If you are worried about your other assets, such as a car, home or some other form of personal property, then Chapter 13 may work better. However, it is important to keep in mind that you should file for bankruptcy before you are dealing with repossession or foreclosure. Bankruptcy cannot stop the process if it is already in place. For more information about personal bankruptcy, visit our webpage.