If you are faced with a repossession, the whole process can feel very intimidating. Put a stop to harassment by creditors and blaze a trail to a new financial future by declaring bankruptcy. Keep reading for useful tips to help you through the process.
Before declaring bankruptcy, be sure you’ve weighed other options. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Meet with a few attorneys who offer free consultations before hiring one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Be sure that bankruptcy really is your best option. Consider whether debt consolidation may be a more viable alternative. Going through the bankruptcy process is a long drawn process which at times can be incredibly stressful. It will certainly affect the credit rating that you have in the future. This is why you must ensure that bankruptcy is the only option left for you.
Chapter 13 Bankruptcy
Research Chapter 13 bankruptcy, and see if it might be right for you. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
Do not let bankruptcy consume you, make sure you make time for your friends and family. Going through bankruptcy is a lot of stress. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. A lot of folks decide to hide themselves from the world around them until the end of the process. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
Filing for bankruptcy is not the best choice if your monthly income is enough to cover your bills. 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.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. Many people feel a lot of stress while they work through the bankruptcy process. Make sure you take care of your part and let your attorney do the rest. Life is going to get better once you get through this.
You can still take out a car loan or mortgage while you are in Chapter 13 bankruptcy. It is a little more difficult, though. Before you can take out a new loan, you will have to clear it with your trustee. Create a budget and prove you can afford a new loan payment. You should also be prepared to explain why you need to purchase the item.
Take action when the time is right. Filling for bankruptcy can be a matter of correctly assessing the right time to begin. In certain situations, you should file right away, but other situations will warrant you waiting. The professional advice of a bankruptcy lawyer can help you pin down the best time to file given your current financial state.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. Many people feel guilty, embarrassed and unworthy when dealing with bankruptcy. Although dealing with a bankruptcy is stressful, try to focus on the positive. Remembering to stay positive as you go through financial difficulties is a great way to deal with your bankruptcy filing.
See to it that you are aware of the laws concerning bankruptcy before you consider filing. You should not transfer your assets to anyone in the year preceding your bankruptcy filing. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
Although bankruptcy can be a valid choice,there are many options to explore before considering it. Keep in mind that debt consolidation offers can be scams that do little more than get you into more financial trouble. Take what you’ve just learned to heart, and make wise financial decisions going forward.
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