Unfortunately, the subject of bankruptcy is all too common these days. This is due to the current financial climate. Before you begin to file bankruptcy, it’s imperative that you know how it works so you can make wise decisions. This article is going to give you that knowledge.
Lots of people have to claim bankruptcy when their bills are larger than their income. If this is happening to you, then learn about the laws where you live. Bankruptcy laws vary from state to state. Your house is safe in certain states; however, in other states, it isn’t. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Find out what you exemptions are prior to filing bankruptcy. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you aren’t aware of this, you could lose some assets that you value.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Don’t file for bankruptcy unless it’s absolutely necessary. Consider whether debt consolidation may be a more viable alternative. Bankruptcy is a stressful process. It will also harm your ability to secure credit in years to come. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Chapter 13
Consider Chapter 13 bankruptcy for your filing. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. However, if you were to miss a payment, the court would dismiss your case right away.
Don’t forget to enjoy yourself during your bankruptcy. Lots of debtors are stressed out when they’ve come to filing time. Depression can ensue from the stress if action isn’t taken. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
If you have fears that you will lose your car, ask your lawyer about the possibility of lowering your car payments. Chapter 7 usually can help payments be lowered. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
Chapter 7
Keep in mind that filing for Chapter 7 bankruptcy may affect other people than just you, including family members, and in some cases, business associates. When filing for Chapter 7, you won’t be responsible legally for debt signed by co-debtors and yourself. However, your creditors will be able demand that your co-debtor pays the debt off in full.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. However, it can be more difficult. First, your trustee will have to approve the loan. You will need to come up with a budget and show that this new loan payment schedule is doable. You will always have to let them know why this item needs to be purchased.
When you are going through bankruptcy proceedings, it is sure to cause a great deal of stress. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Get recommendations and look into other qualifications rather just choosing based on cost alone. The cheapest attorney may not be the best, but the most expensive may not be the best either. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. Try to get a referral from a trusted friend or family member.
Do not wait until things go from bad to worse before filing bankruptcy. Some folks ignore financial difficulties for a long time, and this can be disastrous. All your personal debts will easily go haywire, building and collapsing very quickly. This often leads to foreclosures and garnishments. As soon as you realize your debts far outweigh your income, call a bankruptcy lawyer to talk about what your choices are.
Personal Bankruptcy
Research your state’s bankruptcy laws before filing your petition. Your case may be rife with issues due to pitfalls inherent in codes regarding personal bankruptcy. If you commit severe mistakes, your bankruptcy could be dismissed. Spend some time learning about personal bankruptcy. Doing so will make the process a lot easier.
As you are no doubt aware, bankruptcy is much talked about in today’s economy. So, use what you learned today so that you know what decisions to make while you contemplate filing for bankruptcy.
This is a limited-time offer. We are not able to guarantee availability if you wait!
