As you probably know, the economy is in the toilet. The bad economy has contributed to more job losses and mounting personal debt. Too much debt can lead to bankruptcy and all of its ill effects. If you or a loved one is considering bankruptcy, find out what to do about this situation by reading this article.
Don’t be reluctant to remind your lawyer about specific details he may not remember. Inaccurate or incomplete information can lead to your petition being denied. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
Getting unsecured credit post-bankruptcy will likely be difficult. If you find that to be the situation, consider requesting secured cards. This demonstrates to creditors that you are making a good faith effort to repair your credit. After a certain time, you will then be able to acquire credit cards that are unsecured.
Do not abandon hope. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Interview and research attorneys before choosing one to help you with your bankruptcy.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. The lawyer who properly answers your questions is the one you should hire. It’s isn’t necessary to make a choice right away. So, this gives you plenty of time to consult with several attorneys.
Before you file for bankruptcy, make sure you absolutely need to. You may be able to manager gets more easily by consolidating them. It is not a quick and easy process to file for bankruptcy. It will have a major effect on your credit as time goes on. Needless to say, if some alternative strategy will allow you to take care of your debts, you should give it a try before resorting to bankruptcy.
Chapter 13 Bankruptcy
Research Chapter 13 bankruptcy, and see if it might be right for you. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Just know that missing one payment could cause your case to be dismissed.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. In many cases, you can reduce your payment by filing a Chapter 7 petition. In order for this to be considered, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
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. If you choose Chapter 7, you are no longer responsible for joint debts. However, your creditors will be able demand that your co-debtor pays the debt off in full.
During a Chapter 13 bankruptcy, you may still be able to get a mortgage or car loan. It’s a bit more difficult, though. Your bankruptcy custodian will need to approve the loan. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. You should also be prepared to explain why you need to purchase the item.
Don’t file for bankruptcy without knowing your rights. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. There are not many debts that can not be bankrupted, student loans and child support for example. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
Try your hardest to present a complete representation of your current financial situation. If you leave off even one tiny detail, you may end up in some serious trouble, but at the least your claim will be denied. Even if you think a sum is insignificant, add it into your documentation. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
Avoid Bankruptcy
The economy is showing signs of recovery, but unemployment and underemployment are still high. If you don’t have steady income, you might still be able to avoid bankruptcy. Hopefully, you are now aware of how to get yourself or your loved ones on the right track in order to avoid bankruptcy. May good fortune be with you.
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