Bankruptcy is a decision that should be thoroughly thought about. If you take a few moments to check out the different tips and tactics listed in the text below, you can begin to realize how to navigate your way through the tough mine field that is bankruptcy. All knowledge that you can gain at this point will only help you on the difficult road ahead.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
The best way to build your credit up after a bankruptcy is making all your payments on time. If this is so, apply for a secured card or two. This demonstrates to creditors that you are making a good faith effort to repair your credit. After a while, you may be able to get unsecured credit again.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It’s crucial to read that list before filing to see which of your prized possessions can be seized. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. Interviewing multiple attorneys is a good way to find the best fit.
Chapter 13 Bankruptcy
Consider if Chapter 13 bankruptcy is an option. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
While going through this process, spend more time with friends and family. Bankruptcy proceedings can be extremely harsh. It takes time and a lot of people feel stressed and ashamed throughout this procedure. Some people do not even want to speak with others until the bankruptcy is official. However, you will only feel worse about what has happened, which may lead you into depression. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
Avoid filing for bankruptcy if you make more money than your monthly bills. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. If you choose Chapter 7, you are no longer responsible for joint debts. But, creditors will ask for the money from your co-debtor.
This article has probably helped you see that bankruptcy is a process that involves a lot of planning. Filing for bankruptcy is a very involved and precise process. If you use the advice from this article, everything will be properly taken care of when you file for bankruptcy.
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