Filing For Bankruptcy? These Tips Can Help

Simply mentioning the word bankruptcy can cause people to become nervous and worried. Between rising debt and pressure from the family, it can leave you sleepless at night. If this sounds like you and you are experiencing these feelings right now, the advice here will be of help.

Don’t be afraid to remind your lawyer about important aspects of your case. Just because you have told him something of importance that he will remember it. Your case and future are affected by the attorney’s action, so never be afraid to communicate.

If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A qualified bankruptcy attorney can guide you through the filing process.

Chapter 7

Learn the differences between Chapter 7 and Chapter 13 bankruptcies. 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. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. Take the time to learn more about these different options so you can make the best decision possible.

Protect your house. Filing bankruptcy does not necessarily mean that you will lose your house. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.

Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.

Don’t file for bankruptcy unless it’s absolutely necessary. It might be possible to consolidate some of your debt instead. Bankruptcy cases are long, anxiety-filled experiences. Having a bankruptcy on your record will hinder your ability to get credit in the future. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.

Don’t hide from your friends and family while you go through bankruptcy. The whole process of filing for bankruptcy is hard. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. It can be hard to face the world while the bankruptcy process is taking place. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. Time spent with people who care about you can give you new perspective on your financial situation.

Make sure bankruptcy is truely your only option before filing. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. You can apply for a modification of your mortgage if your home is going into foreclosure. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.

You may want to see if you can get lower payments on your vehicle if you want to keep it. Chapter 7 bankruptcy is one of the most common and effective. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.

People who say that bankruptcy is a scary experience aren’t exaggerating. While it may have frightened you previously, you should fear bankruptcy no longer after reading this article. Take this advice to heart, and do everything possible to improve your situation.

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