The economy is bad looking these days. A lot of people with no jobs find themselves in debt. The unfortunate result of this is that more and more people are filing for personal bankruptcy. If you, a friend, or a loved one is in financial trouble, this article could help decide if bankruptcy is the right option.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If this is your case, you should do some research about bankruptcy laws in your state. Bankruptcy rules vary by jurisdiction. Your house is safe in certain states; however, in other states, it isn’t. You should be familiar with the laws for your state before filing for bankruptcy.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. You may not know everything you need to know in order to have a successful outcome of your case. An attorney will make sure that everything is being done correctly.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Before you file for bankruptcy, make sure you absolutely need to. Consolidation could be the avenue you need to get your finances back in order. Bankruptcy cases are long, anxiety-filled experiences. It will affect your access to credit in the future. You have to make certain that you absolutely have no other choice.
Chapter 13 Bankruptcy
Research Chapter 13 bankruptcy, and see if it might be right for you. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
Remember to spend some quality time with your loved ones. Going through a bankruptcy can be an excruciating experience. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. It can be hard to face the world while the bankruptcy process is taking place. Self-imposed isolation can make you feel worse about it and can cause depression. Remember that it is not your families fault for your financial hardships and use this time to pull together and be strong.
Avoid filing for bankruptcy if you make more money than your monthly bills. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
Although the economy is slowly picking up, there are still many people left without jobs and a decent wage. If you don’t have steady income, you might still be able to avoid bankruptcy. Hopefully, the information in this article has provided you with useful information that can help you stay out of bankruptcy. I wish you the best of luck.
This is a limited-time offer. We are not able to guarantee availability if you wait!
