Any situation leading to bankruptcy may not be happy, but your life can improve afterward. Bankruptcy exists in order to provide you with a fresh start. Keep reading for ways to experience bankruptcy as a positive thing.
Bankruptcy Laws
Millions of Americans file for bankruptcy each year because they can not pay their bills. If you find yourself going through this, you should know all about the laws that are in your state. Bankruptcy laws vary from state to state so it is important to do your research. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Be aware of bankruptcy laws before filing your claim.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Unless there is no other choice a retirement account should not be used. Your savings accounts offer valuable financial security so try to leave them intact.
It is important to understand your rights when filing bankruptcy. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Speak with a lawyer that will provide you with guidance for the entire thing.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
It is possible to keep your home. Bankruptcy doesn’t always mean you’ll lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Loved Ones
Always make your loved ones a priority. The bankruptcy process can be brutal. It is long, hard and sometimes leaves people feeling guilty or ashamed. Lots of people choose to disappear for a while until the entire process is over and done with. But, isolating yourself from others could bring out more depression. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. There are many recouses available to help you lower your payments and get back on track. Loan modification plans can help if you are dealing with foreclosure. 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 the creditors just want their money, and more often than not will work with you on a repayment plan.
Once the initial filing period is over, ensure that you are getting out and enjoying life. The process of filing for bankruptcy can make people a nervous wreck. This stress could actually cause depression, if you don’t combat it. Remember that your situation is going to improve after you file for bankruptcy.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. It is possible to get your car payment lowered if you file using Chapter 7. If you meet the criteria specific to your state, it may be a good option to consider.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. For instance, it’s prohibited for an individual to transfer assets to someone else a year before filing for bankruptcy. It is also against the law to max out your credit cards before filing for bankruptcy.
Consider other options prior to filing for personal bankruptcy. You might want to look into the possibility of credit counseling instead. There are even non-profit companies that may be able to help you. These companies work with creditors to reduce your payments and interest. All you have to do is give them your payments and they handle paying the creditors.
Never take big cash advances from the credit cards that you own prior to filing for bankruptcy, even though you know that the debt will be erased. Not only is this fraud, but you could end up having to pay back the money, even once you have filed for bankruptcy.
Avoid making payment that might interfere with your filing. Some bankruptcy rules do not allow you to send money to creditors within three months of filing; this can extend up to a full year if a loved one is involved. Know the rules before you jump in feet first.
Resist the temptation to be dishonest when filing for bankruptcy. In fact, lying about what debts and assets you posses is one of the most serious mistakes you can make. Doing this is against the law. You may go to prison if you lie when recording your assets and debts.
Look over your debts before filing for bankruptcy to make sure they will clear your credit report, as you would not want to file unnecessarily. Some debt, such as student loans, will remain on your credit history regardless of if you file. You can address these kinds of debt by working with credit repair agencies or taking out debt consolidation loans.
As you read in the beginning of this article, bankruptcy is not something anyone looks forward to. But, that does not mean life after bankruptcy has to be negative. As a matter of fact, if you put the ideas in this article into play, you can let bankruptcy proceedings a pivotal moment in your existence towards a brighter future.
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