Filing for bankruptcy is a serious decision that should be considered throughly. There are many factors involved in the bankruptcy process and it is crucial that you understand them. Apply the advice from this article to go down the right path. No matter which decision you make, knowledge is essential.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Don’t be afraid to remind your attorney of certain details in your case. Don’t assume that he will remember something you told him weeks ago. All information submitted to the court with your signature needs to be double checked.
Unsecured Credit
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If you are in this situation, applying for a secured card may be the answer. This at least shows you are making an honest attempt at reestablishing your credit worthiness. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Don’t throw in the towel. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Speak to a lawyer who will be able to help you file the necessary paperwork.
Protect your house. It isn’t inevitable that you will lose your house when you file for 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 this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Chapter 13
You could see about filing for Chapter 13 personal bankruptcy. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Consider that if you even miss one payment, your case will not be considered by the court.
If you make more money than you need to pay your bills, you should not file for personal bankruptcy. You should know that filing for bankruptcy will ruin your credit score for at least ten years and that improving your credit score will be expensive.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. It is common for people to stress when filing. This stress could actually cause depression, if you don’t combat it. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
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. You can relieve yourself of any liability for debts that you may share with someone else through a Chapter 7 filing. However, if you had a co-debtor, they will be required to pay the debt.
As you have read in this article, there are many ways to file personal bankruptcy. Don’t be overwhelmed by the vast amount of information available. Think about the tips included above. That way, you stand a better chance of making a wise decision.
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