Just thinking about bankruptcy can make people fearful. Increasing debt, coupled with the inability to support their families is a real nightmare for many people. If you’re frightened by bankruptcy, or are living with its effects, you’ll find helpful advice in the following paragraphs.
Keep working to improve your situation. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Interview and research attorneys before choosing one to help you with your bankruptcy.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. You should make a final decision only once all of the questions or concerns are sufficiently attended to. After your consultation, take your time to make your decision. You can take your time and check out several attorneys before making your final selection.
Chapter 13 Bankruptcy
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 7 eliminates all debts. You will be removed from any contracts you have with your creditors. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Look for a lawyer who you can relate to.
Chapter 13
Consider filing for Chapter 13 bankruptcy. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. 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.
Know your bankruptcy rights. Many creditors or bill collectors might tell you your debts cannot be included in a bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If you are told differently by a collector, research the information yourself. If you find they are in error, get the name of their company, phone number and any identifying info so you can report it to the attorney general in your area.
Be sure you know the bankruptcy laws before you think about filing. For example, it is against the law to transfer any assets from the filer to another for a year before filing. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
Personal Bankruptcy
Research the rules and regulations of personal bankruptcy before you file. There are a lot of pitfalls in the personal bankruptcy code that could lead to issues with your case. If you commit severe mistakes, your bankruptcy could be dismissed. Take time to research things related to personal bankruptcy before you move forward. This will make the bankruptcy process much simpler.
Don’t file for personal bankruptcy until you’ve looked into your other options. You may want to consider credit counseling. May non-profit companies are available to help you. These companies work with creditors to reduce your payments and interest. You can even pay your creditors through them.
If you intend to file bankruptcy soon, you may want to discontinue paying all debts. Bankruptcy laws prohibit some creditor payoffs within 90 days of filing. When it comes to family members, a year is the cutoff for payoffs. Do your research and figure out the laws for you.
Many people are frightened of bankruptcy, and rightly so. If you understand all of the ins and outs of personal bankruptcy, you need not fear it. Start making use of this bankruptcy advice right now and give your financial life a fresh new start.
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