Bankruptcy is a very serious issue that many people take for granted, and think they can use it as a way to get out of paying your debts. However this should be the absolute last option to be taken when in debt. Once you have filed for bankruptcy it is put on your credit report and will remain there for the statute of limitations which stays on for 10 years.
In order to understand all of this you need to know what Bankruptcy is. Bankruptcy is a federal law which allows debtors who own money to eliminate the debts, or work out a payment method. Bankruptcy also will help debtors with those bill collectors and will stops wage garnishment. There is a lot that goes into filing for bankruptcy.
When filing for bankruptcy you need to keep in mind that bankruptcy is a legal process. This is for your own financial wellbeing. With each decision dealing with bankruptcy you need to make sure you are well informed of all your choices. You can get legal help with it or you can do it on your own, but doing it on your own you need to make sure your patient and able to understand all the legal information that you will be reading and signing.
Trustees are usually appointed to collect all non exempt property. If you decide to file on your own you have to then decide what chapter you want to file under. There are three different chapters you can file with; there is chapter 7, Chapter 13, and Chapter 11. Chapter 7 is also known as liquidation (converting assets into money) or straight bankruptcy.
Chapter 7 is most common form of bankruptcy filing. Chapter 7 is the fastest way to start fresh as long as there are no objections from the parties that are involved in the bankruptcy. Most chapter 7 bankruptcies are usually closed within just a few months. With chapter 7 by signing a reaffirmation agreement, a debtor may continue paying on your car loans and house mortgage. You could retain some or all of their property. Chapter 11 is for individuals associated with corporations and partnerships. Chapter 13 is for individuals with regular income.
Unfortunately considering that this is all a legally binding document there is no way of getting a bankruptcy off of your credit report other than to wait out the statue of limitations, which is ten years. The only thing you can do to get rid of a bankruptcy is if the bankruptcy is not yours then you may dispute it and get it off of your record.