Everyone knows that filing bankruptcy is your chance to press the reset button on your credit history. It is your chance to start over, and try to maintain better control of your credit this time. Before you can file bankruptcy, you need to decide what kind of bankruptcy you are filing. Basically, this means you need to know if you are filing chapter 7 bankruptcy in Washington DC or Chapter 13.
If possible, Chapter 7 bankruptcy is considered to be the best option by just about everyone. It is the only bankruptcy that is going to wipe your slate clean. It will erase everything but secured loans and things such as child support, mortgage payments, and tax debts. Naturally, you do have to qualify for Chapter 7 bankruptcy, and not everyone does.
It is important to keep in mind that filing Chapter 7 Bankruptcy in Washington DC is something that is going to take a lot of money and time. Even if you have a law firm such as Andrews Law helping you, out it can take anywhere from three to six months for the process to be completed. You should know that Chapter 13 takes much longer than Chapter 7 does. You are going to need $300 to file bankruptcy plus whatever your bankruptcy lawyer is charging you.
It has to have been more than 8 years since the last time you filed Chapter 7 bankruptcy for you to be able to file for it again. It also has to be proven that your current income does not make it possible for you to pay off your debts, even if you were put on a Chapter 13 repayment plan for the next three to five years.
Any time you file bankruptcy, you are going to be placed in an automatic stay until a decision is made. This just means that creditors are not going to be allowed to contact you until after the decision is made. Threatening letters and phone calls will stop. It will help protect you from your utilities being disconnected. This also means that they would not be able to garnish your wages until a decision is made.
