Personal Bankruptcy

Personal bankruptcy is when a person has debt they can not afford to pay. Filing for bankruptcy allows a person’s debts to be relieved and, in some cases, their creditors will be paid in full. Before you decide to apply for a personal bankruptcy, it is important to educate yourself on the process and what the possible out come may be. A person who is not educated on bankruptcy and files for bankruptcy may fear they will lose their car, home or other valued possessions. This is not always the outcome. If you file for bankruptcy, in most cases, you will still be able to keep your vehicle, your home and your valuables.

If you are claiming bankruptcy based on the debt your are in for your home or vehicle and do not want to lose these valuables, you can claim a payment plan bankruptcy. This type of bankruptcy allows you to have a court order that states you have three to five years to pay of your debt to keep your home or your vehicle. A liquidation bankruptcy allows your valuables to be sold in order to pay off your existing debts or to pay a portion of your debts. When a person does not have the valuables to sell in order to pay off the debts, they may file for a no-asset bankruptcy.

This type of bankruptcy will allow the creditor to use the existing debts as a tax write deduction from the person in debt. You should fully educate yourself on what bankruptcy is and what the process and outcome will be for your particular case by talking with a bankruptcy lawyer. Your lawyer will be able to help protect you and help you decide if bankruptcy is right for you.