There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. They are bothered by collection agencies and creditors and their bills are not being paid down. If this sounds like you and your situation, filing for bankruptcy may be a good idea for you. Continue reading this article so you can figure out if this is something you should do.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If that is the case, you should try applying for one, or two secured cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After a time, you are going to be able to have unsecured credit cards too.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
You should be able to meet with a specialized lawyer for free to ask your questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. After the consultation, you are not immediately required to come up with a decision. This will give you extra time to interview several attorneys.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. To learn about these changes, try contacting your state’s legislation office or checking their website.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Consider filing using chapter 13 bankruptcy. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. 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. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. There are many other options including debt consolidation and making payment plans with your creditors. If a foreclosure is on your horizon, look into loan modification plans. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
You have undoubtedly gleaned from the text above that bankruptcy doesn’t have to be a difficult process as long as you’re informed. Always remember that people who become informed before going through the motions do much better with everything involved. Take your time to read and to understand these tips before implementing them and using them to your advantage.
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