Is Bankruptcy Right for You? part 2

Read the first part of this article : Is Bankruptcy Right for You? part 1

5. Be careful – you can loose your home.

Be very careful when you apply for bankruptcy because in no circumstances you will not be relief of the obligation to pay your mortgage. You may loose the equity if you file for Chapter 7.If you go for Chapter 12 you can keep the propriety but pay the mortgage.

6. Can you loose other properties?
If you apply for Chapter 4 you may loose your car or other substantial proprieties that are not protect by your stat exemption laws.

7. What happen with credit card debts?
Bankruptcy can save you from most of the credit card debt or insecure loans only if you don’t have outrageous expenses or you lied in the bankruptcy application.

8. What happens to my pension?
In most of the states you will not loose your pension (Be sure you check twice your state’s laws).Find out what is protected in your state: IRA, 401(k) or life insurance

9. What about cosigners?
Chapter 12 will protect your cosigner and Chapter 7 will stick then with any debt. Ask your bankruptcy lawyer about it and get informer before doing any move.

10. What about your life?
Bankruptcy is a painful and intrusive process. Be prepared because will be a hard period for you. You will have to disclose every detail of your finances to the court and other people may find out about intimate details.

Read the first part of this article : Is Bankruptcy Right for You? part 1