If you are really positive that you want a do it yourself bankruptcy instead of consulting with a bankruptcy attorney and taking this pivotal decision with his or her help, you should start by learning the difference between a Chapter 13 bankruptcy and Chapter 7 bankruptcy.
It is very important, first, that you discover how many years exactly these bankruptcy types will remain as a bankruptcy record in your credit history. Second, you must know which type of debts will not be discharged and you will have to continue repaying.
You have to analyze how many non-dischargeable debts will still remain, and figure out how you will live after filing bankruptcy.
Filing chapter 7 bankruptcy
In essence, bankruptcy Chapter 7 means that you hand over all your assets that are not exempt from a bankruptcy procedure to someone else. Your properties are then sold off in order to pay your debts. A Chapter 7 bankruptcy does not provide for a repayment program.
This bankruptcy record can remain on your credit report for up to ten years. The most troubling part of the new bankruptcy laws is that often although debtors feel their income is low, they still earn too much money and do not qualify for a chapter 7 bankruptcy.
Filing chapter 13 bankruptcy
Instead, a bankruptcy Chapter 13 involves, basically, a repayment schedule and it can appear on your credit report for a maximum of 10 years, although in practice the maximum applied is seven years from the date of the chapter 13 bankruptcy filing.
As you can see, going for a do it yourself bankruptcy is an extremely serious matter that can have a lot of influence over your credit for many years to come. We still think that, whenever possible, it is less risky to consult with a specialized bankruptcy attorney, even if it costs you money.
Therefore, before taking a final decision about a do it yourself bankruptcy, ask yourself: Should I declare bankruptcy?, and honestly decide if it is worth it.
If you still want to file bankruptcy yourself, do a thorough online research that is directly related to you present financial circumstances. In the second place, after deciding for a do it yourself bankruptcy, start by working out a debt payoff schedule you are sure you can stick to.