The economy is terrible today. With a bad economy means that more and more people are losing jobs and getting in debt. Debts can result in filing for bankruptcy, which can seem to be a terrible thing. If you, a friend, or a loved one is in financial trouble, this article could help decide if bankruptcy is the right option.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this is your case, you should do some research about bankruptcy laws in your state. Bankruptcy laws vary from state to state. Your home and other major assets may be protected in your state, while they are vulnerable in other states. It is important to understand the laws in your state before filing for bankruptcy.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. In this event, you should attempt to apply for a secured card or two. This demonstrates to creditors that you are making a good faith effort to repair your credit. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. It is a good idea to consult several attorney before deciding on one. Choose to file only if your lawyer has convinced you that this is the best decision. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. That gives you the chance to speak to a number of lawyers.
Be sure to enlist the help of a lawyer if you’re going to be filing for bankruptcy. The topic of bankruptcy is a complicated one and it is important that you know all about it. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Safeguard your most valuable asset–your home. Bankruptcy filings do not necessarily mean that you have to lose your house. You can still keep your home, it just depends on your specific situation and the value of your home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
If you are considering filing for personal bankruptcy, be certain that this is really the right course of action for you. It might be possible to consolidate some of your debt instead. The bankruptcy process takes forever to finish and is very nerve-wracking. It will affect your access to credit in the future. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Unsecured Debt
Consider filing a Chapter 13 bankruptcy. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Remember to spend some quality time with your loved ones. The bankruptcy process can be brutal. It takes time and a lot of people feel stressed and ashamed throughout this procedure. A lot of folks decide to hide themselves from the world around them until the end of the process. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. There are qualifications, such as the loan being high interest and a good work record for this option.
Before you file for bankruptcy, make sure you understand your rights. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. Only a few kinds of debt, like student loans or child support, are ineligible for bankruptcy. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Be certain you are totally aware of the laws of bankruptcy before you file. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
Financial Information
It is important to be upfront with all your financial information when filing for bankruptcy. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. You might think something is insignificant, but you should add it anyway. Financial information should include all income, assets and loans.
Don’t stress about trying to determine whether bankruptcy is something you must do. It’s hard to admit you need assistance, but the longer you decide to wait, the worse the debt can get. Take responsibility to talk with a bankruptcy expert sooner, rather than later. The longer you wait, the more difficult the situation can become.
The economy is showing signs of recovery, but unemployment and underemployment are still high. There are some things that can be done to prevent filing for personal bankruptcy even for those who have no steady income. Hopefully, this article has given you information that you can use to avoid having to file for bankruptcy. We wish you well.
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