Are you so far in debt that you may have to file for bankruptcy? If so, you have come to the right place. There are countless resources available online to help you avoid the ruins of going through a bankruptcy. This article can help you take steps to avoid bankruptcy, and how to handle it if you must file.
Personal Bankruptcy
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
Ask yourself if filing for bankruptcy is truly your best option. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
You should never give up. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. 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. A lawyer will be able to assist you with filing the paperwork to get the items back.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy completely wipes out your debt. You will be removed from any contracts you have with your creditors. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Safeguard your home. Filing for bankruptcy does not mean you have to lose your home. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Don’t isolate yourself from family and friends. The process of bankruptcy can prove particularly brutal. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. It is not uncommon for a person to feel the need to pull away from loved ones during the process. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. Time spent with people who care about you can give you new perspective on your financial situation.
Don’t file for bankruptcy the income that you get is bigger than your bills. While filing may seem simple and a way to get out of paying your debts, it does tremendous amounts of long-term harm to your credit report.
Proper planning could place you in the proper place. The more you can distance yourself from having to file for bankruptcy, the better off you are. The important thing is to take steps to avoid bankruptcy. Once you have a plan, you’ll be ready for whatever happens.
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