When you’re indebted to people or institutions, it’s only a matter of time before they show up at your door to collect. Sometimes literally. Cease debt collector calls, then figure out your financial situation by thinking about personal bankruptcy. This article will provide you with information to help you through this rough time.
Check the accuracy of all information before it is filed. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You need not decide right away. That gives you the chance to speak to a number of lawyers.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Familiarize yourself with the bankruptcy code before you file. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state’s legislative offices or website will have up-to-date information about these changes.
Safeguard your home. Filing for bankruptcy doesn’t automatically involve losing your home. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. 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.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Spend time researching the advantages and disadvantages of filing for each one of these. Before making any decisions, discuss the information you have learned with your lawyer.
Before filing for bankruptcy ensure that the need is there. Sometimes consolidating your existing debts can make them more manageable. Bankruptcy is a long process that can be stressful. It will certainly affect the credit rating that you have in the future. You have to make certain that you absolutely have no other choice.
While going through this process, spend more time with friends and family. The process for bankruptcy can be hard. It can be long and drawn out which adds lots of stress and leaves people feeling empty inside. Many people decide to hide away from the world until the process is over. However, this isolation will just make you feel worse, and it could cause you to be depressed. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
Interest Rate
Make sure bankruptcy is truely your only option before filing. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
While personal bankruptcy can always be an option, don’t do it before looking at other options. Most debt consolidation companies aren’t legitimate and will make your debt worse. If you must file bankruptcy, learn from your mistakes and become a more conscientious consumer.
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