Bankruptcy is a tough decision for people to make, but in many situations, it is the correct choice. It’s best to make the decision of filing for personal bankruptcy after doing a little research and gaining a clear understanding of the topic. Continue reading for good advice from others that have filed for bankruptcy themselves.
Bankruptcy Laws
Most people end up filing for personal bankruptcy because they owe more than they make. If you are in this position, you need to be familiar with the laws in your area. You will find that each state has their own bankruptcy laws. Some states protect your home, and others do not. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Do not hesitate to remind your lawyer of any details regarding your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Speak up. This is your life, and your future depends on it.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
It is possible to keep your home. You don’t have to lose your home just because you are filing for bankruptcy. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. You are still going to want to check into homestead exemption either way just in case.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Chapter 13
Thing about filing a Chapter 13 bankruptcy. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. However, if you miss even one payment, the court will dismiss your entire case.
If you make more money than what you owe, filing for bankruptcy is not a good option. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Pick the right time to file. When you time things right, it does you good, especially when you’re filing for personal bankruptcy. There are occasions where it pays to delay and others where a quick decision is the best option. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
Forget about detrimental terms, such as shame, when you are filing for personal bankruptcy. Going through bankruptcy can cause you to lose a lot of self-esteem. These feelings can cause you to make rash decisions and cause psychological problems. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
If you plan on filing bankruptcy, never wait too long. It is all too common for people to hope that their financial difficulties will disappear if they don’t give them any attention. Debts can get out of control fast. If you’re not taking care of these debts, you may be getting into trouble like wage garnishment. As soon as you find yourself experiencing financial problems, take action and discuss your options with a bankruptcy attorney.
Before filing personal bankruptcy, consider other options. Credit counseling may work for you. May non-profit companies are available to help you. These companies work with creditors to reduce your payments and interest. Often, they make the payments to your creditors, and you make your payment to them.
Nobody wants to file for bankruptcy, but in some cases the situation becomes necessary. Now that you have read through this article, you should be familiar with a lot of tips from people who were once in your shoes. By learning from others who have been there before, it will make things a lot easier on you.
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