bankruptIt doesn’t matter who you are.  At some point you’ve needed more money than you have.  And just as many people have probably spent more money than they have, using credit cards or borrowing money from a friend or family member.  It’s just how it goes.  And how many of you have sat around wishing you could just not owe that money any more.  You might want to win the lottery, or envision all debt around the world just eliminated.  Well, the real deal is that you can do that, but it’s a very pricey thing to do involving a ton of legal paperwork.  And you can be guaranteed that your credit rating is going to go through the floor and bust out of the other side of the planet.  You can learn more about this at FileForBK.  It’s where I got my start and it’s a good introduction site.

Every country and state has their own regulations surrounding the process of applying for bankruptcy.  You may have to give up ownership of a lot of your property or you may be allowed to keep a certain amount of your assets.  It totally depends on the individual laws where you live or work a business.

If you don’t own a lot of property, assets, homes, cars, etc., then you might consider doing a liquidation bankruptcy, which is called Chapter 7.  This means you give up all of your assets so they can be sold to pay for your debts.  The reason this can be a good thing is that you stop being garnished to pay for your debts.  You can finally get back to earning money again instead of paying it out as soon as you make it.  You aren’t even usually allowed to hold the money.  It is withdrawn from your paycheck before you even touch it.

This will get rid of most of your debts except for the obvious ones are you still going to owe, like student loans and alimony.  You can’t just file for bankruptcy to get rid of child support or money that you owe because you did something illegal like fraud or other fees associated with being a felon or criminal.

Another type of bankruptcy is chapter 13, which essentially allows you to block your assets from being frozen or taken from you and gives you three to five years to create a plan and pay off the majority of your debt.  This sounds bad, but it’s really beneficial to both parties.  If you are a creditor and someone cannot pay off their debt, continuing to pile it on them is not likely to get you paid.  So as long as you get your initial loan paid back plus some then you’ve made a positive return on your investment.  There is no need to ruin somebody’s life.

So if you are in debt or you are owed a debt, consider how bankruptcy could help both of you come to a fair agreement concerning the elimination of the debt.  Be nice, be fair, and support one another so both parties can have a plan for the future.