If you are considering filing for bankruptcy, your life probably hasn’t been so great recently, but that doesn’t mean things can’t improve once you file. The main point is to start over financially. Continue to read this article to learn how good a bankruptcy can end up being for your life.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States DoJ along with other private and nonprofit organizations all have insightful knowledge. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Unsecured Credit
Getting unsecured credit post-bankruptcy will likely be difficult. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will show people that you are serious about getting your credit record back in order. Unsecured credit may be offered to you quicker than you think after doing so.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you aren’t aware of this, you could lose some assets that you value.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You can think about your decision before making a commitment. You can take as much time as you need to meet with different lawyers.
It is imperative that you know for sure that bankruptcy is the option you need. You may well be able to regain control over your debts by consolidating them. Bankruptcy cases are long, anxiety-filled experiences. Credit will be much harder for you to come by after you file for bankruptcy. Because of this, you should be sure that bankruptcy is your only option before you file.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using 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. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Remember that missing a payment to the plan will result in your case being dismissed.
If you are making more money than you owe, bankruptcy should not even be an option. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
Look at all the alternatives to bankruptcy before filing. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing. Look into loan modification plans if you need to deal with an imminent foreclosure. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.
Do not forget to enjoy life a little once you get through the initial filing process. The filing process is extremely stressful for a lot of the people who go through it. That stress can lead to depression, if you don’t take the right steps in fighting it. Life will get better after you finally get this situation over with.
Chapter 7
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. You may have your responsibility for your portion of the loan discharged under Chapter 7. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
Learn from the mistakes you made that sent you to bankruptcy court. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. Actually, by using the advice you’ve learned here, your story of hardship could have a happy ending after all!
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