Before they find themselves in a position of needing to file for personal bankruptcy, many people believe the only losers would do so. If you lose your job, your spouse or find yourself overwhelmed with bills, filing for bankruptcy might be the only option left. This article contains advice to help you if you are considering bankruptcy.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
If you’re going to file bankruptcy, you need an attorney. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Chapter 13 Bankruptcy
Know the differences between Chapter 7 and Chapter 13 bankruptcy. Should you choose Chapter 7, your total debt load will be erased. All of your financial ties to the people you owe money to will disappear. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. Take the time to learn more about these different options so you can make the best decision possible.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot 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.
Protect your house. Bankruptcy filings don’t necessarily have to end in the loss of 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. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Chapter 13
If you are going to be filing for bankruptcy, think about filing Chapter 13. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Consider that if you even miss one payment, your case will not be considered by the court.
Being with the people who you love should be still be a top priority. The process of bankruptcy can prove particularly brutal. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. Lots of people think they need to hide from everyone until this is all done. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. You can apply for a modification of your mortgage if your home is going into foreclosure. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Look all paths you can take to get control of your financial debts before making the choice to file for bankruptcy. If changing circumstances have caused you to be in this position, you shouldn’t stress yourself out. This article will provide valuable information for you.
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