The specter of bankruptcy can cause many individuals to break out in a cold sweat. Ever increasing debt, along with the difficulty of supporting a family is very frightening for some people. If this scares you, or you are experiencing this living horror, then this advice will be of use to you.
Many people need to file for bankruptcy when they owe more money than they can pay off. If this describes your situation, it makes sense to become familiar with relevant laws. Each state has its own set of rules regarding bankruptcy. Your house is safe in certain states; however, in other states, it isn’t. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If this happens to you, think about applying for a couple of secured credit cards. This will demonstrate that you’re seriously trying to restore your credit. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Do not abandon hope. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Talk to a lawyer for help with the petition filing process.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. After the consultation, you are not immediately required to come up with a decision. Be sure to talk with a number of lawyers, and compare the information you receive.
Chapter 7
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 eliminates all debts. This type of bankruptcy ends any relationship you might have with creditors. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Weigh all the information you can find on- and off-line to make an educated decision. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Before you file for bankruptcy, make sure you absolutely need to. You may well be able to regain control over your debts by consolidating them. It is not a quick and easy process to file for bankruptcy. Your credit will be impacted for many years. Needless to say, if some alternative strategy will allow you to take care of your debts, you should give it a try before resorting to bankruptcy.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. But, creditors will ask for the money from your co-debtor.
Filing for bankruptcy can be a very scary and intimidating experience. Now that you have read this article, you now never again have to be scared of bankruptcy. Take the info shared here and apply it to your situation where needed so that you can move forward to a brighter future again.
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