Whatever leads you to bankruptcy is a sad tale, but that need not mean that’s the only story to tell for the rest of your life. Bankruptcy is all about giving you a fresh start. Keep reading for ways to experience bankruptcy as a positive thing.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. You can learn a lot on the U.S. Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
Keep at it! There may still be way to get repossessed items back after you file for bankruptcy. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Talk to your lawyer to find out how to go about properly filing a petition.
Learn of new laws prior to deciding to file for bankruptcy. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. To learn about any changes, search the Internet or contact your state’s legislative office.
Safeguard your home. Filing for bankruptcy will not always result in losing your home. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Be sure you go on the Internet and do your research to see what’s best for you. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Be sure that bankruptcy really is your best option. Perhaps just consolidating some of your existing debt, could make them easier to manage. Filling for bankruptcy could be a long and stressful process. Credit will be much harder for you to come by after you file for bankruptcy. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
Chapter 13
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. If you are about to lose your house, talk to your lender about a loan modification. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Understand the rights you have as a bankruptcy filer. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. There are a few debts that cannot be cleared, such as student loans and child support, but be sure to know the details when dealing with debt collectors. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.
Be sure you’re acting when the time is right. They say timing is everything, and this rings true when filing for bankruptcy. In some cases, you should file for bankruptcy right away, but in others, there may be reasons why filing quickly would be a bad idea. Have a chat with a bankruptcy specialist to discover when the ultimate time would be for you to file.
When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. It is absolutely difficult to admit you require help. On the other hand, the longer you delay, the more debt you rack up. Talk to a lawyer as soon as you can to get the advice that you need.
Lots of individuals who filed bankruptcy vow to never again use credit cards or lines of credit ever again. This is not wise because you need to rebuild a good credit file. Failing to build an acceptable credit rating can prevent you from obtaining financing for a car or home at a later date. You just have to realize that proper planning is going to have to take place and that you are going to have to start back up one step at a time.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. If you use these tips, you may be able to use bankruptcy to make your life better going forward.
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