Bankruptcy Advice Every Consumer Should Know In Advance

The decision to file for personal bankruptcy must not be taken for granted. Being aware of the complexity of the issues involved in bankruptcy is essential. Use what you learn here to guide you towards making the right decisions regarding personal bankruptcy. Just make sure you do enough research so that you are more prepared for any future obstacles.

Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The U.S. Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.

When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.

Brush up on the latest bankruptcy regulations before you decide whether or not to file. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. Your state’s website should have the information that you need.

Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. 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 13 Bankruptcy

Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. You will no longer be liable for any money that you owe to your creditors. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. To make the wisest choice, you will need to understand the consequences of each of these two options.

Safeguard your home. You do not have to lose your home in the process of a bankruptcy. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.

Consider Chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.

Do not forget to be around those you love. Bankruptcy proceedings can be extremely harsh. Having to declare bankruptcy leaves many people feeling like a failure. Avoidance of friends of family during the process is not uncommon. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Time spent with people who care about you can give you new perspective on your financial situation.

Chapter 7

Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.

Act when the time is right. They say timing is everything, and this rings true when filing for bankruptcy. For some people, filing right away is best, however for others, waiting a while is best. Discuss your particular situation with your bankruptcy attorney to determine the best time to file.

Bankruptcy can get a bit tricky at times, but as long as you’re using what you learned here, the process should be a lot easier. These different choices can be intimidating, but they really aren’t once you get a handle on them. Take a few moments to ruminate upon these tips. You will make better decisions by doing this.