A lot of folks in modern times are deep in debt. Filing chapter 7 or 11 can be the last option for many people. You may have found yourself in the same situation, and you should know that bankruptcy could be a good option for you. Have a look at the information provided here to ascertain if your situation can be improved using this method.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. You can also avail yourself of other options, such as consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
When it comes to informing your attorney about your case, don’t be fearful. Lawyers are people too, and sometimes they forget important information and need to be reminded. Speak up if something is troubling you, as this is your future we are talking about here.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. 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. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For example, consumer credit counseling programs can help if your debt isn’t too large. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Chapter 13
Do some research to find out more about Chapter 13 and Chapter 7. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. All happenings with creditors will disappear. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Your most important concern is to protect your home. Filing for bankruptcy does not mean you have to lose your home. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. You are still going to want to check into homestead exemption either way just in case.
Chapter 13
Consider Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. Going through bankruptcy is difficult. It can be long and drawn out which adds lots of stress and leaves people feeling empty inside. It can be hard to face the world while the bankruptcy process is taking place. However, this isolation will just make you feel worse, and it could cause you to be depressed. Time spent with people who care about you can give you new perspective on your financial situation.
Personal Bankruptcy
Before you file your petition, be sure that you understand personal bankruptcy rules. The code governing personal bankruptcy is a complex area that is subject to much misunderstanding. Small errors could even cause your case to be dismissed. It is important to learn the bankruptcy code before filing bankruptcy. The entire process will be much easier when you move forward with awareness.
Do not get sizable cash advances from credit cards before filing for bankruptcy because you think the debt from the cards will be erased., This is fraud, and you will be required to pay that money back.
Many people who have filed for bankruptcy, resolve to never use credit or credit cards again. This may not be such a great idea because you still need credit to to help build better credit. If you don’t ever use credit, your credit history will not improve, and you may not be able to purchase important things like a home and car. Start with having a single credit card to help you go in the proper direction.
Personal Items
When you file for bankruptcy, it doesn’t mean that you will lose your assets. Your personal items will stay with you. Some included items are: electronics, household furnishings, clothing and even jewelry. The personal items that you are allowed to keep will depend on your home state’s individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.
Make a detailed list of the debt that you have. This will be the basis for your bankruptcy filing, so make sure you include all the debts you are aware of. Make sure you go through your records and be sure about the exact amounts. Don’t do this process too fast because these amounts won’t get discharged if the numbers aren’t right.
This article should have made it clear that there is plenty of help out there for someone who wants to file for bankruptcy. Bankruptcy can help you start over with and give you tools to become a more responsible consumer.
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