The economy is not in good shape. The cycle of a tough economy leads to people losing jobs and going into debt. High debt often leads to the miserable state of bankruptcy. The following article will help you, or your loved ones, gain control of your financial situation and hopefully prevent bankruptcy.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable 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 you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Avoid touching your retirement accounts whenever possible. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Credit Cards
After a bankruptcy, you may not be able to receive any credit cards. If this happens to you, think about applying for a couple of secured credit cards. You can exhibit your desire to rebuild your credit this way. After some time passes they may be willing to offer you unsecured credit.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. In Chapter 7 most of your outstanding accounts will essentially be erased. All happenings with creditors will disappear. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. However, it will be a longer and more arduous task. Your trustee must approve any new loans such as this. Create a budget and prove that you will be able to afford it. You also need to be prepared to answer questions about your need for the new item.
Pick the right time to file. Timing can be critical when it comes to personal bankruptcy cases. In certain situations, you should file right away, but other situations will warrant you waiting. Have a chat with a bankruptcy specialist to discover when the ultimate time would be for you to file.
Financial Information
When filing for bankruptcy, list all of your financial information. If you forget information you run the risk of having your petition delayed, or possibly even dismissed. All financial information needs to be considered by the court. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
If you intend to file bankruptcy soon, you may want to discontinue paying all debts. The laws surrounding bankruptcy often prohibit paying back certain creditors up to ninety days prior to filing, and family members up to a year! Do your research and figure out the laws for you.
You do not need to lose all your assets just because you file for bankruptcy. Most of the time, you retain your personal possessions. This will include things like clothes, jewelry and electronics. While this varies based on the laws in your area, your particular circumstances and the kind of bankruptcy you choose to go with, it may be possible to keep big-ticket items like your automobile or even your residence.
While the economy is beginning to gather steam, a number of people still do not have jobs or acceptable compensation. Although bankruptcy can be avoided in some cases; there are other cases where bankruptcy is the only sensible option. It is our sincere hope that this article has helped you to determine a way to avoid filing for personal bankruptcy yourself, or will help a friend or loved one avoid this fate. Let the force be with you.
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