Filing for bankruptcy is a very important decision and one that shouldn’t be taken lightly. Read the tips and suggestions in the following article so you know what to expect and just what you should be doing before you make that important decision. Doing as much research as possible is important.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The US Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. Avoid ever touching retirement funds until you have no other choice. If you have to use a portion of your savings, make sure that you save some to ensure that you are financially secure in the future.
Unsecured Credit
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If this happens to you, think about applying for a couple of secured credit cards. That will show lenders that you are committed to rebuilding your credit. Unsecured credit may be offered to you quicker than you think after doing so.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. It is important to be aware of this list so you will know what assets are saved. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Do not give up hope. You might even be able to get back secured property that has been repossessed in the 90 days before filing. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Learn of new laws prior to deciding to file for bankruptcy. Laws are subject to change, and it’s important that you’re educating yourself about current code only. If you are not sure about the current laws all you have to do is look into what laws have been passed.
It is possible to keep your home. You do not have to lose your home in the process of a bankruptcy. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
If you are earning enough to cover your bills, don’t file for bankruptcy. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Think about all your options before pulling the trigger. Before filing, talk with an attorney who can help you weigh all of your options. Loan modification plans can be helpful for those facing foreclosure. The lender wants their money, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
As the preceding article suggests, bankruptcy is not something that magically happens. Several steps must be completed, and completed accurately. If you use the advice from this article, everything will be properly taken care of when you file for bankruptcy.
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