Learn to Cope With the Stress of Filing Bankruptcy

When someone learns they need to file bankruptcy to eliminate their debt, they are already at their wits end. While nobody really wants to file for bankruptcy sometimes it becomes inevitable. Looking at it through your rose-colored glasses all you need to remember is that you will be virtually debt-free at the end of the bankruptcy filing. When it comes to filing bankruptcy it comes in two basic chapters, chapter 7 and Chapter 13. Filing Chapter 7 bankruptcy is best known as the liquidation chapter. This is because the bankruptcy trustee has the ability to take any property that is non-exempt and liquidate it to divide the proceeds amongst the creditors. In today's economy, rarely does anyone lose any property that is filing Chapter 7 bankruptcy. The property has to be worth a substantial amount to come under the radar of the trustee. The bankruptcy trustee weighs out the cost of collecting the items versus how much time it will take to sell and how much will be recovered. In a bad economy sometimes it's hard to liquidate property so this is taken into account. On the other side of the coin is Chapter 13 bankruptcy. A Chapter 13 is best known for its ability to protect one's real estate. In a Chapter 13 bankruptcy, the debtor and their bankruptcy attorney are required to come up with a feasible repayment plan that will last 3 to 5 years and be submitted to the bankruptcy court. When the plan is approved, the bankruptcy trustee will disperse the funds with priority debts like a mortgage getting paid first and unsecured debts, like credit cards, getting whatever's left over. Lately, Chapter 13 bankruptcy has been used in many circumstances due to the real estate bubble bursting back in 2007. Whatever chapter you decide to file, a person needs to remember that the stress of filing bankruptcy will only last for a short period of time. Many times, after filing the bankruptcy petition much of the stress is removed because of the automatic stay. The creditors can no longer contact an individual after the automatic stays put in place. The Automatic stay will stop foreclosure, lawsuits, judgments and wage garnishments. If this is what is distressing someone prior to filing bankruptcy, rest assured all of this will immediately stop and allow the individual to live quietly without worrying about being harassed by their creditors. Filing Chapter 7 bankruptcy takes about 4 to 6 months from beginning to end and Chapter 13 lasts a little longer than 3 to 5 years.