Filing bankruptcy is a bit complicated. Bankruptcies come in different types; what you choose is subject to your financial situation and the kind of debts that you have. You should learn all you can about bankruptcy before filing. This article will give you some of the important facts about bankruptcy.
Bankruptcy Laws
Generally bankruptcy is filed when a person is facing insurmountable debt. If this sounds familiar, you should read up on the bankruptcy laws in your state. Bankruptcy laws vary from state to state so it is important to do your research. Your house is safe in certain states; however, in other states, it isn’t. Be sure you educate yourself on local laws prior to filing.
Don’t fear reminding your attorney of any specific details of your case. Don’t assume that he will remember something you told him weeks ago. This is your bankruptcy and your future, so never be nervous about speaking your mind.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If you are in this situation, applying for a secured card may be the answer. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. Eventually, you could be able to obtain unsecured credit.
Keep at it! When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Get help from your lawyer to file a petition so you can get your items back.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Look for a lawyer who you can relate to.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy, if you chose to file. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. However, if you were to miss a payment, the court would dismiss your case right away.
Remember that your Chapter 7 filing may affect other people in your life as well. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. Your creditors can then come after your co-debtor for full repayment of the debt.
If you are filing for bankruptcy, it is imperative that you have a good understanding of your rights. Some debt collectors like to say that you cannot file for bankruptcy on these debts. Only a few debts are immune to bankruptcy. Taxes, student loans and child support would be the major ones. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
Do not use the word “shame”, if you go bankrupt. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. A good way to deal with bankruptcy is to make sure that you keep a stiff upper lip.
Go ahead and file for personal bankruptcy as soon as you realize it is necessary. Some people think that by ignoring financial problems, they will just disappear. This kind of thinking could prove to be a mistake. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. As soon as you’ve decided that you no longer have a handle on your debts, consult a bankruptcy lawyer to see if bankruptcy is right for you.
You are now aware that filing for bankruptcy is a choice that is one you should think through thoroughly prior to committing. If you feel that bankruptcy best suits your current financial position, then ensure you retain an experienced attorney who can help you.
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