According to the Bankruptcy Code lists 19, personal loans are typically dischargeable when you file for bankruptcy (chapter 7). You can file for bankruptcy with a court yourself or with the attorney. You will have to pay for a few fees including attorney and filing fees. You will still have to pay for the filling fee even if you file for the bankruptcy yourself. Several documents must be prepared when you are filing for bankruptcy including financial record for your asset, debt and expenses.
Prior to filing, you should receive credit counseling with an approved provider. The credit counseling should take place within 180 days. Upon completing the course, you will receive a certificate. The certificate must be attached along with the application form otherwise they will reject your filing.
If you keep on receiving calls from your creditor, you should provide them with your case number and filing date. Doing so can stop them from bugging you with phone calls. The filing date can be found on top of the bankruptcy document that the court send to you. It is next to the page where your case number is.
You should receive the bankruptcy document along with all copies of the notices even if you have a lawyer to represent you in the court. By providing your filing date, the creditor will be able to verify your bankruptcy and stop making cold calls. Sanctions can be taken against the creditor if they did not stop making phone calls.
The majority of the people who are forced to file for file for bankruptcy are not considered to be wealthy or rich. The median income is only about $35,000. Filing for bankruptcy allows you to be discharged from your debt and also slow down the repossession of your house and car. It will also affect your credit rating as the record will stay on your credit report for up to 7 years. It also help to put an end to the collection actions that your creditor has taken against you like eviction, wage garnishment or entering into liens.
Filing for bankruptcy gives you a second chance to start all over again but it have a long term punishment. During this time, it will be hard for you to get a loan because of the record in your credit report. It is a strenuous process that can take at least 6 months or more to solve the situation.
However, it is a good time for you to think things over and plan. You can how to you can become financially disciplined and have a fresh start again. It is best for people who believe that they will take over 5 years to repay the debt. There are other alternatives like debt settlement or debt management that can take up to 5 years to solve the problem.