It can be very hard to live with a personal bankruptcy filing. When things are tough financially, your credit options are limited. However, there are some things that can be done to get what you want.
If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. Leave your retirement accounts untouched unless there is absolutely no other alternative. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. Bankruptcy exemptions are properties may not be seized during bankruptcy. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Do not abandon hope. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. A qualified bankruptcy attorney can walk you through the petition process.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You don’t have to make your decision right after this consultation. You can take as much time as you need to meet with different lawyers.
Learn all the latest laws before you file bankruptcy. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. If you are not sure about the current laws all you have to do is look into what laws have been passed.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. Those with smaller debts may find use in a program for consumer credit counseling. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Chapter 7
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. Any ties that you have with creditors will be dissolved. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
You can take steps to hang onto your house. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. The process of filing for bankruptcy can make people a nervous wreck. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Once your petition is in the hands of the judge, all you can do is wait.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. However, it will be a longer and more arduous task. You will have to get this loan approved by your trustee. You need to develop a budget and show that you will be able to afford the new payment. You will need to be able to explain why the purchase is necessary.
Know your bankruptcy rights. Collectors may try to convince you that your debt can’t be discharged. Only a small number of debts are not dischargeable, including student loans and child support obligations. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Filing for bankruptcy can cause stress. To combat these problems, look into securing a good lawyer. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. It is not necessary to engage the lawyer who charges the highest fees; all you need is a lawyer of high quality. Ask your friends, relations and acquaintances who have shared your experience to give you referrals to good lawyers. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
Remember that bankruptcy isn’t the end of the world. Just look at Donald Trump. He has filed multiple times! Get on track and stay there to show lenders your positive new efforts. So begin saving your money and you will realize how much difference it makes when shopping for a home loan or car.
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