Making the decision to file for bankruptcy isn’t an easy one, but sometimes it can be the only way out of a mountain of debt. The best way to approach the situation is with an education about the process. Read on for knowledge and wisdom passed on from those who have gone through bankruptcy themselves.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Find out what you exemptions are prior to filing bankruptcy. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. It’s crucial to read that list before filing to see which of your prized possessions can be seized. It is important to know what types of possessions may be taken away before they actually are seized.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Chapter 13
Consider Chapter 13 bankruptcy, if you chose to file. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Make time to visit with family and friends during the bankruptcy process. Going through a bankruptcy is never easy. It takes time and a lot of people feel stressed and ashamed throughout this procedure. Many people tend to hide until their process is completed. However, this isolation will just make you feel worse, and it could cause you to be depressed. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
If you are earning enough to cover your bills, don’t file for bankruptcy. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
Repayment Plans
Look at all the alternatives to bankruptcy before filing. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. Loan modification plans on home loans are a great example of this. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
When you are looking at a Chapter 7 personal bankruptcy, you may well have debts to worry about for which you share responsibility with another person, such as a spouse, family member, or business partner. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. Any co-debtor may well be held responsible for paying off the total remaining amount of the debt, though.
You can still take out a car loan or mortgage while you are in Chapter 13 bankruptcy. Of course, it’s difficult. First, your trustee will have to approve the loan. You need to develop a budget and show that you will be able to afford the new payment. You will always have to let them know why this item needs to be purchased.
If you decide to file for bankruptcy, it’s important that you’re educated about your rights. Some debtors will try to tell you your debt with them can not be bankrupted. Most states allow for the majority of debt to be included on a bankruptcy. If the bill collector is trying to deceive you, then report that company to your local attorney general’s office.
Bankruptcy should not be put off until the very last second. Some people think that by ignoring financial problems, they will just disappear. This kind of thinking could prove to be a mistake. It doesn’t take long for debt to become unmanageable, and not taking care of it could eventually lead to wage garnishment or foreclosure. Consider all possible options before filing bankruptcy.
It is possible that a bankruptcy might actually be smarter over the long term than struggling month to month with consistently late or missing payments. Though it will still mar your credit history for up to 10 years, the damage can be improved. A great feature of bankruptcy is its ability to provide consumers with a clean financial slate.
Nobody enjoys filing for bankruptcy, but at times, you can’t avoid it. After reading this article, you should have learned some important information about the bankruptcy process. It will be a little easier to face bankruptcy after learning from people who have experienced it.
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