If you are facing the repossession of valuables, such as cars or jewelry, you may be feeling some fear. Consider your finances and put an end to creditor calls, by petitioning for personal bankruptcy. This article will provide you with information to help you through this rough time.
Make certain that you comprehend everything regarding personal bankruptcy by studying online. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
Credit Cards
The best way to build your credit up after a bankruptcy is making all your payments on time. If this happens to you, think about applying for a couple of secured credit cards. This demonstrates to creditors that you are making a good faith effort to repair your credit. After a time, you are going to be able to have unsecured credit cards too.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. It is necessary to be open regarding both the positive and negative aspects of your financial life. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, consumer credit counseling programs can help if your debt isn’t too large. 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.
Meet with a few attorneys who offer free consultations before hiring one. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Looking for an attorney will help you find a lawyer you feel good around.
Be sure your home is well protected. Filing for bankruptcy doesn’t automatically involve losing your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. 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 are unable to properly commit to the plan you agree to, your case can be dismissed.
Do not forget to make quality time for friends and family members. Filing for bankruptcy is a difficult process. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. Many people don’t feel like socializing during the ordeal. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. 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 really want to keep your vehicle, speak with your lawyer about possible choices. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
Make sure you consider implications of bankruptcy before filing for Chapter 7. When you file a Chapter 7, your debts will be dissolved. However, creditors will want to hold your co-signer responsible completely.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. There are extra hoops to jump through. You must meet with a trustee to gain approval for a new loan. Present a planned budget that shows how you can take on the loan payment and stay current. You will need to be able to explain why the purchase is necessary.
Consider all available options before deciding to file for personal bankruptcy. Credit counseling is one option you should consider. There are many different non-profit companies that can help you. They’ll talk to creditors and strive to get both your payments and interest rates lowered. You pay them and then they pay the creditors.
While personal bankruptcy can always be an option, don’t do it before looking at other options. Keep in mind that debt consolidation offers can be scams that do little more than get you into more financial trouble. Take the tips you have learned here and use them to improve your financial situation to avoid becoming mired in debt in the future.
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