Filing for personal bankruptcy is an option that anyone with property repossessions should consider. Of course your credit will be hurt when you file for bankruptcy, but sometimes this is your best choice. Continue reading for more information about how and why to file for bankruptcy.
When it comes to informing your attorney about your case, don’t be fearful. It is wrong to assume that your lawyer will remember every word you ever utter! Don’t fear speaking up since it affects your case and future.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If this happens to you, think about applying for a couple of secured credit cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. Eventually, you could be able to obtain unsecured credit.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. Whoever provides your legal consultation must be privy to all of your financial information. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
State Legislature
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. The ties with the creditor will be broken. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. It is vital that you know the differences between these types of bankruptcies, in order to find the option that’s best for you.
Protect your home. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. You are still going to want to check into homestead exemption either way just in case.
If you really want to keep your vehicle, speak with your lawyer about possible choices. Filing under Chapter 7 is usually a good way to lower your payments. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. It is just tougher. You will need to go through various hoops in order to be approved for any new loan type. You will need to make a budget and prove that you will be able to afford your new loan payments. You will also need to explain why it is necessary for you to take out the loan.
When you file for bankruptcy, you should be very aware of your rights. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. You should know that only a few debts cannot be erased, including student loans and child support. If these are not the categories in which your debts fall, double check to see if the type of debt can be bankrupted. If it can, be sure to file a complaint about the debt collector with the office of the state attorney general.
Now you can see why bankruptcy may be a good option for you. It is not something that should be done lightly, however, due to the negative effects it can have on one’s credit. As long as you’re properly informed about which moves to take and when, you should have little trouble navigating the process and ultimately restructuring your credit.
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