It can be hard, but at times necessary, to file for bankruptcy. The best way to approach the situation is with an education about the process. Keep reading to learn some valuable tips from someone who has stood in your shoes.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Once you file for bankruptcy, you will have a hard time getting loans or credits. If you do, then try applying for a coupe of secured cards. When you do this, it shows your determination to fix your credit history. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Learn the benefits and drawbacks of each type before deciding which is right for you. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Find out more about Chapter 13. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
After you have finished with the initial process of filing, you can relax and take a breather. A lot of debtors usually get stressed when they file. Depression can ensue from the stress if action isn’t taken. After you have finished filing for personal bankruptcy, your life will improve.
See if your attorney can help you lower your payments if you want to keep your vehicle. Many times, payments can be lowered through Chapter 7 bankruptcy. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. This is harder. Normally, the trustee assigned to your bankruptcy must approve any new loan. Draw a budget up and show how you can pay the newer loan payment. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Before you file for bankruptcy, make sure you understand your rights. It is not unusual for creditors to claim that their debt is not able to be discharged. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If you are speaking to debt collectors about another type of debt and they tell you it cannot be discharged, check your local regulations. You can report the collectors to your state attorney general if they are lying about this.
It is important to not wait for the final minute to petition for bankruptcy. The judge reviewing your petition will consider your recent behavior, purchases, income and payments when making a decision. It is very common for personal debts to snowball suddenly. When this happens, terrible consequences, such as wage garnishment and foreclosure result. As soon as you see your debts getting out of control, seek the counsel of a good bankruptcy attorney to see what your options are.
Understand the rules and laws before submitting your petition for bankruptcy. You want to understand what is going to happen when you file for your specific case. Small errors could even cause your case to be dismissed. Take the time to research personal bankruptcy before moving forward. This will make things easier in the long run.
Nobody wants to file bankruptcy, but some people cannot avoid it. The article you just read should have given you some insight and inspiration on how to proceed with your bankruptcy case. You can take comfort in the fact that others have been in this situation before you, so take heed from their experiences to help you deal with your own.
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