Personal Bankruptcy

Most often filing a bankruptcy petition is a simple process, which can be handled through a paralegal. However, in complicated cases you may need the advice of a qualified lawyer. A bankruptcy may stay on your credit file for seven to ten years. Bankruptcy, although a last resort, may not stop you receiving credit in the future. Although many creditors will reject you because of your bankruptcy status, you will also find some creditors may deem your bankruptcy status as a good risk. The reason for this is that once you have filed bankruptcy you will no longer have debts and cannot file another bankruptcy for at least seven years.

There are different types of bankruptcy, two of these are:

• Chapter 7 bankruptcy, where you request the court to relieve you of all your debts
• Chapter 13 bankruptcy, where you provide the court with a plan to pay off your creditors within three to five years.

Once your bankruptcy as been filed most actions against you are stopped. By law, your creditors cannot initiate or continue with any actions against you or call you to demand payment of your debt to them. However, some debts may still remain. If you file for chapter 7 Bankruptcy they will still be there once you have filed. If you file for chapter 13 bankruptcy these debts will have to be incorporated in your payment plan. If you forget to list some debts in your bankruptcy this debt will still remain. You will still be liable for any fines or penalties imposed on you for breaking the law. Debt from cases brought against you for death or personal injury caused by driving under the influence of drink or drugs will still remain. You may still be accountable for some tax debts may and you will still be liable to pay any existing child support or alimony. Any debts you incurred through fraud will not be wiped out when you file bankruptcy. Also when you file for bankruptcy any loans or luxury goods bought within 60 days of filing will still need to be paid.