It can be very complicated to file for personal bankruptcy. Several different types or “Chapters” of bankruptcy are available to you. Depending on the state of your finances and the type of debt that you have accrued, you may qualify for one type of bankruptcy, but not another. You need to know all you can about bankruptcy before you decide to file your petition. The tips included in this article should give you some direction as you go through the process of deciding to file and filing for personal bankruptcy.
If bankruptcy is an option for you, secure the services of an attorney. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Chapter 13 Bankruptcy
Research Chapter 13 bankruptcy, and see if it might be right for you. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. This lasts for three to five years and after this, your unsecured debt will be discharged. Just know that missing one payment could cause your case to be dismissed.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. This is a lot harder. First, your trustee will have to approve the loan. You need to develop a budget and show that you will be able to afford the new payment. You also have to prepare yourself to explain the reasons you need to buy the item.
Before you file for bankruptcy, make sure you understand your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If the bill collector is trying to deceive you, then report that company to your local attorney general’s office.
Make sure that you act at the appropriate time. When filing for personal bankruptcy, it is very important that you act at the correct time. While there are times that it is ideal to file soon, there are other times in which you should wait. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Prior to filing, it is important that you know all about bankruptcy laws. There are many pitfalls you can easily fall into, such as transferring away assets to prevent them from being included in the filing. In addition, it’s unlawful for a filer to acquire more debt on their credit cards before they file.
Gain an understanding of bankruptcy law before you file. If you do not file for bankruptcy properly, you might run into a lot of different issues. You might find that your case become dismissed because of a mistake. Before you go ahead, devote a little time to research and the topic of personal bankruptcy. Doing this can make the process simpler.
Don’t take big cash advances off your credit cards in the days prior to filing for bankruptcy. Doing so constitutes fraud. You can easily be ordered to repay all of this money, by the courts.
Credit Card
Several of those who’ve already filed for bankruptcy vow that they won’t have a credit card ever again. That is not a great idea, because using credit builds better credit. Without using credit cards or other forms of credit, it is nearly impossible to rebuild your credit worthiness. Start with one credit card to get your credit going in the right direction.
Quickly decide to start being more fiscally responsible prior to filing. It is important not to make your debt larger just before bankruptcy. Your creditors will take your current finances into account when assessing your bankruptcy filing. Your current spending behavior should show that you are making a real effort to modify your financial habits.
Now you know that filing for bankruptcy requires a lot of thought. If you decide that it makes sens for your financial situation, you can benefit from working with an attorney who is experienced with personal bankruptcy, so that you can make the experience the beginning of your new, clean financial slate.
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