Did you know that one out of every 70 United States households files for bankruptcy? There are two types of personal bankruptcy, chapter 7 and chapter 13 bankruptcy. Whenever you feel you are in peril of declaring bankruptcy, talking to a bankruptcy attorney is the first step, and the smartest thing to do.
Civil judgments, wage garnishments and liens are generally stopped when you file bankruptcy. Chapter 13 bankruptcy is the form of bankruptcy that involves restructuring your debt rather than liquidating your assets, and in most cases chapter 13 bankruptcy rules dictate that the debtor is allowed to retain most of their property.
In most cases of chapter 7 bankruptcy, the individual is allowed to keep some exempt property, although most liens survive. The liquidation of most of the property of the debtor is imminent, however, whenever that person declares chapter 7 bankruptcy. Chapter 7 bankruptcy stays on your credit report for 10 years from the date of the filing, which contrasts with chapter 13, which only lasts 7 years on a credit report.
No one is immune to the financial problems that lead to bankruptcy, as according to the Institute of Financial Literacy, more than 27 percent of filers hold at least a bachelors degree. At the end of the day, the smartest thing you can do when you are in danger of filing for bankruptcy is to talk to someone that is a professional on the subject, such as a bankruptcy attorney. Their advice is the most valuable thing you can get in that situation, and can ultimately help you out more than you could ever imagine.