Personal Bankruptcy – The Last Resort to Debt-Free Life

The process of filing for personal bankruptcy, always requires comprehensive personal financial information of a person. The step of filing may involve collecting the list of all the unsecured as well as the secured debts, any relevant loan documents, car titles, any owned real estate deeds and the last two years of tax returning proof documentation.

The bankruptcy filing may be done with or without the help of an attorney. In case of filing without the attorney, the person has to fill the required bankruptcy form directly, which requires details of last two years’ financial transactions as well as the financial status to be revealed.

In case of filing the Chapter 13 bankruptcy, the repayment plan should be submitted along with the petition as well. After completion of the bankruptcy petition, the person must file the petition with the United States bankruptcy courts.

As far as the pricing is concerned, the Chapter 13 bankruptcy filing fee is about $185 whereas that of the Chapter 7 is about $200. The person may file a personal bankruptcy under the two main chapters, namely the chapter 7 or Chapter 13.

The Chapter 13 bankruptcy helps the debtor to make a payment plan within three to five years. But the Chapter 7 is nothing but the liquidation of the assets, in which the assets are converted in to the money. There are certain primary reasons such as loss of employment, child care, divorce, excess medical expenses and excessive credit card debt, for which an individual goes for the personal bankruptcy filing.

Such events may cause the financial dilemma as well as the distress to the life of individual and hence, an individual must consider all the available options along with the bankruptcy. Moreover, the person must learn perfectly about the federal bankruptcy law, before filing for personal bankruptcy.