Personal bankruptcy ins and outs are something everybody should know. These days with the economy going up and down and every which way, it doesn’t take much to lose a job and be put into a precarious financial situation.

Spend some time learning about personal bankruptcy in detail before deciding that it is the right action for you.  Many people have fears that their children’s toys could be subject to being taken. It is better to know the facts well in advance – especially if you are considering whether or not you need bankruptcy services or not.

Getting an out-of-court settlement with creditors by using a counseling or debt management service, or getting a debt consolidation loan are two actions to take to avoid bankruptcy. However, if these approaches have failed for you, it is time to carefully consider personal bankruptcy laws in your state.

Each state has laws governing what personal property may be exempt from a Chapter 7 or Chapter 13 bankruptcy.  Chapter 7 is for people with no equitable property.  Chapter 13 has regulations about what you can keep and what must be sold to pay debts.

Some states allow the debtor to use federal regulations on the matter of property. Remember that some debts such as student loans (with two seldom used exceptions) , fines, mortgages or liens not paid in the case,  some taxes, and money owed for child support or alimony are not covered by bankruptcy.

Keeping your home or car may require you to pay any equity in the item(s) toward debt, pay off any missed payments, and continue to pay mortgage payments and car payments owed. Yes it is possible to get a bankruptcy mortgage, but it is a high risk loan for the banks and not necessarily easy to get.  Being able to do this would allow you and your family pets to remain together.  Though declaring yourself bankrupt is certainly a difficult thing to go through, there is the possibility of getting bankruptcy loans – if you’ve had to go through this ordeal.

Remember that the filing of a bankruptcy will stay on your credit record for ten years. Establishing new credit after filing bankruptcy is often difficult due to the necessity of making secured loans until some credit is recognized.