People often shudder at the mention of the word bankruptcy. Not being able to provide for their loved ones and debt that continues to mount is an issue for many. If these circumstances sound familiar, you stand to benefit from the tips that follow.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
You should never give up. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Consult with a lawyer who is able to assist you in the filing of your petition.
Weigh all of your options before declaring bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. Should you choose Chapter 7, your total debt load will be erased. This includes creditors and your relationship with them will become no longer existent. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. 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.
Chapter 13 Bankruptcy
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Consider that if you even miss one payment, your case will not be considered by the court.
Don’t file bankruptcy if you can afford to pay your debts. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
Before filing for bankruptcy, learn your rights. Some debtors will try to tell you your debt with them can not be bankrupted. However, there are few debts that cannot be eliminated, like student loans and child support payments. If your creditors are telling you any other kind of debts cannot be cancelled, get a written proof and send it to the general office of your state’s attorney to report this illegal behavior.
Make sure you act at an appropriate time. Timing is very important when it comes to personal bankruptcy filings. For some debtors, immediate filing is ideal, whereas in other cases, it is smart to hold off until a later time. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy.
Don’t overly concern yourself with any negative feelings you are having. A lot of people have a negative opinion of bankruptcy, mostly because they misunderstand this procedure. These sorts of feelings are not helpful to you. Indeed, they may cause you mental anguish. The best way of dealing with bankruptcy is to keep a positive attitude during this time of financial upset.
Credit Counseling
Don’t file for personal bankruptcy until you’ve looked into your other options. Credit counseling is one option you should consider. You can get the help you need from a variety of non-profit credit counseling companies. They will liaise with those you owe money to and try to get better payment options opened to you. Often, they make the payments to your creditors, and you make your payment to them.
Anyone fearing bankruptcy has a legitimate fear; filing a claim can be scary. While you may have been frightened of bankruptcy in the past, you don’t need to be scared anymore. This article has armed you with information. Use this personal bankruptcy advice as soon as possible and make things better for yourself and your loved ones.
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