The national economy remains in poor condition. A poor economy means more people than ever have debt and are losing their jobs. For a lot of people, filing for bankruptcy is the only logical solution. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Most states differ in their laws governing bankruptcy. For instance, your home might be protected in some states while you might lose it in others. Know what the laws are in your state before filing.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
Unsecured Credit
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. If you find that to be the situation, consider requesting secured cards. You can exhibit your desire to rebuild your credit this way. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Do not abandon hope. 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 the items were repossessed less than three months prior to your filing date, you may be able to recover them. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Your most important concern is to protect your home. Filing for bankruptcy does not guarantee that you will lose your house. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Don’t file for bankruptcy if it is not completely necessary. Sometimes consolidating your existing debts can make them more manageable. It can be quite stressful to undergo the lengthy process of filing for personal bankruptcy. The future of your credit will be greatly affected. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
Chapter 13 Bankruptcy
Research Chapter 13 bankruptcy, and see if it might be right for you. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Consider that if you even miss one payment, your case will not be considered by the court.
Before proceeding with your bankruptcy, it’s a good idea to start spending ample time with the people you care about most. Bankruptcy can take a toll on you. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. Many people don’t feel like socializing during the ordeal. This is not a good idea because staying alone could cause serious problems with depression. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
You may want to see if you can get lower payments on your vehicle if you want to keep it. Often, you can negotiate a lower payment through bankruptcy. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. Some bill collectors will tell you that your debts can’t be bankrupted. Most states allow for the majority of debt to be included on a bankruptcy. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. Many people get feeling of guilt when going through bankruptcy. But, such emotions get you nowhere, and they can cause significant mental issues to emerge. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.
Financial Information
When filing for bankruptcy, list all of your financial information. Omissions or errors may cause your case to take more time to resolve, or even be rejected entirely. Even if you believe that certain financial information is inconsequential, do not avoid including it in your documentation. Current loans, second jobs and assets ought to be included.
Bankruptcy affects people from all walks of life. Even if you do not have a steady paycheck, you still have options to help you avoid filing bankruptcy. Hopefully, the information in this article has provided you with useful information that can help you stay out of bankruptcy. Hopefully, you have the best luck.
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