Many people think people who file for bankruptcy are deadbeats, but change their tune when their debts become untenable. A quick change in an life, such as a divorce, can cause a situation that can only result in bankruptcy. If you find yourself in this position, the following article will be of great assistance.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. There are plenty of other options open to you, like consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Stay positive. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. 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. Speak with your attorney about filing the correct petition to get your property back.
Weigh all of your options before declaring bankruptcy. You could find relief from small debts by using a consumer credit counselor. It is also possible to do your own debt negotiations; however, be sure to get everything in writing.
Chapter 13
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. You will no longer be liable for any money that you owe to your creditors. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Don’t automatically assume that bankruptcy is your only option. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. Loan modification plans can be helpful for those facing foreclosure. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. Most creditors will be willing to work out an option to avoid not getting paid at all.
Chapter 7 Bankruptcy
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. However, it can be more difficult. Normally, the trustee assigned to your bankruptcy must approve any new loan. You need to show them why and how you can handle paying back the new loan. Also, be sure you can provide an explanation as to why this purchase is necessary.
If you’ve already tried everything you can think of to dig out of your financial mess, it might be time for bankruptcy. You need not stress out, if your circumstances have brought you here due to things outside your personal control. This article will provide valuable information for you.
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