Many people are in debt these days. They are harassed by collection calls and creditors all while the bills keep piling up. If you find yourself in these circumstances, you might want to think about filing for personal bankruptcy. Continue reading to learn more about whether you need to file for bankruptcy or not.
Brush up on the latest bankruptcy regulations before you decide whether or not to file. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. To know what these changes are, go to your state’s website or contact the legislative offices.
It is imperative that you know for sure that bankruptcy is the option you need. It might be possible to consolidate some of your debt instead. Going through the bankruptcy process is a long drawn process which at times can be incredibly stressful. Your credit will be impacted for many years. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. The process of bankruptcy can seem brutal. It can be long and drawn out which adds lots of stress and leaves people feeling empty inside. A lot of folks decide to hide themselves from the world around them until the end of the process. But, keeping to yourself is likely to cause even greater sadness and despair. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
Speak with an attorney about any fears you have about losing your car. You may even be able to get your monthly payment reduced. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. But, creditors will ask for the money from your co-debtor.
If you plan on filing bankruptcy, never wait too long. It is a mistake to ignore your financial troubles, hoping they will go away on their own. Your debt can quickly get way too large, and as a result, you may discover that you must foreclose your home or garnish some of your wages. You should call a good bankruptcy lawyer and ask for advice as soon as you find your debts have become completely unmanageable.
Try your hardest to present a complete representation of your current financial situation. Failing to list these could cause the dismissal or delay of your bankruptcy petition. Add every summer, no matter how insignificant, to your documentation. This may include secondary employments, vehicles you own and loans you still owe money on.
Don’t just assume bankruptcy is the right option, especially if you have not considered others. Consider credit counseling. There are a number of companies that will assist you, many of which are non-profit. They will liaise with those you owe money to and try to get better payment options opened to you. You pay the organization, and they pay creditors for you.
Now you should be aware that there is plenty of available help when thinking about filing for bankruptcy. With an open mind, you will be able to soon get the help you need to help your financial situation.
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