Many people fear the thought of bankruptcy. Between rising debt and pressure from the family, it can leave you sleepless at night. If you are in a situation that may require a bankruptcy filing, don’t let fear overcome you. Read this article and learn valuable tips and advice to make this scary situation much more manageable.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If this sounds familiar, you should read up on the bankruptcy laws in your state. Every state is different when it comes to dealing with bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Familiarize yourself with the bankruptcy laws of your state prior to filing.
Never lie about anything in your bankruptcy petition. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Always remind your lawyer of specifics that are important to your case. It is wrong to assume that your lawyer will remember every word you ever utter! Speak up. This is your life, and your future depends on it.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
No matter what, don’t give up! Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. A qualified bankruptcy attorney can walk you through the petition process.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. You may not know everything you need to know in order to have a successful outcome of your case. When you engage the services of a bankruptcy lawyer, you can be assured of getting the help your need to proceed correctly.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Chapter 7, for example, will wipe away every one of your outstanding debts. All happenings with creditors will disappear. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. You need to determine which type of bankruptcy is right for you given your unique financial situation.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Talk to the lawyer and not his assistant, who may not be legally able to help you. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy, if you chose to file. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. You can secure your home under Chapter 13 and pay your debts with a payment plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Consider that if you even miss one payment, your case will not be considered by the court.
Don’t automatically assume that bankruptcy is your only option. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing. If you are looking at foreclosure, think about a loan modification program. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
Filing for bankruptcy can be a very scary and intimidating experience. That said, the best antidote to fear is information, and this article has given you that in spades. Using the personal bankruptcy advice in this article can help improve your financial situation.
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