• The Best Ways to Ensure your Financial Wellness

    What is chapter 13 bankruptcy

    You have tried all other options. The time has come to look at the worst case scenario. After a rough couple of years financially, you are asking the question of how do I file for bankruptcy? Simply filing for bankruptcy does not have to wreak the rest of your life. There are several ways to rebuild your financial portfolio to put your life back on track.

    There are two types of personal bankruptcy: Chapter 13 and Chapter 7. Chapter 13 bankruptcy is rehabilitation with a payment plan for individuals with a regular source of income. This enables individuals with regular income to develop a plan to repay all or part of their debts. Chapter 7 is basic liquidation for individuals and businesses and and is the simplest and quickest form of bankruptcy available. According to studies as much as 65% of all US consumer bankruptcy cases filings are Chapter 7 bankruptcy cases.

    Bankruptcy is a problem that can be found throughout the United States. 16% of Michigan bankruptcy filings for the year 2011 were Chapter 13 filings. In Michigan in 2011, there was a bankruptcy filing rate of 5.64 per 1000 residents. There is hope after bankruptcy. Did you know that even the uber-rich real estate mogul Donald Trump has filed for bankruptcy — not just once but four times? With careful planning you can rebuild your financial portfolio and achieve personal success.

    With careful planning and financial management, it is possible to rebuild your credit after bankruptcy. There are a number of ways you can cut down on your debt every day. The road to recovery can start by rebuilding your savings, which should always be between three to six months salary. You can also pay credit charges in full and keep non-mortgage debt payments below 15% of disposable monthly income. If you want to start saving for retirement, invest in an IRA or another retirement savings account.

    If you find yourself asking how do I file for bankruptcy, you must know your rights and what you can do to repay your debt in the quickest manner possible. If you are having trouble, consult with a bankruptcy attorney. If you are proactive early in the process, you will never again have to ask yourself how do I file for bankruptcy. Ger more information on this topic here.