When you know that you owe some creditors a large sum of money, you might consider bankruptcy. Bankruptcy is not a forever condition, but a solution to the present situation and also the opportunity to start all over again.
What does bankruptcy mean?
Bankruptcy is the legal condition of clearing unpaid debts. All your properties and your goods and any other income are used to clear the liability to your creditors.
You may not realize it, but there are certain things you can (and cannot) do right before you file your chapter 7 bankruptcy. You do want to take full advantage of any perks of bankruptcy, but you also don't want to accidentally take actions that could get your case thrown out of court. To learn about some things you can do, and some you should not do, read on.
Use your credit cards, but be careful.
Filing bankruptcy is a big decision, but it is not the end of the world. Sometimes it is the best option for an individual or the only option after everything else has been tried. Understanding and navigating through the system can be tough, and having an experienced bankruptcy lawyer to help you is the best option. While it is always the last resort, it can be the best solution in some situations.
One of the main criteria for filing for bankruptcy under chapter 13 is that you have to make payments to your repayment plan consistently. Your repayment plan is usually going to be anywhere from 3 to 5 years long depending on your income and the amount of debt that you owe. In the event that you miss a payment or fail to pay back the entire value of the plan, your bankruptcy filing might get dismissed in court.