Filing for bankruptcy must not be taken lightly. Read this article to find out more about personal bankruptcy and get the information you need to make an educated decision. Find out all the information you can before filing for bankruptcy.
Most people end up filing for personal bankruptcy because they owe more than they make. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Different states use different laws when it comes to bankruptcy. Your home is safe in some states, but in others it’s not. Make sure you know the laws where you live before you file.
If you are going through a bankruptcy do not fall victim to guilt and pay off debts that you do not need to pay. You should never touch your retirement accounts, unless you have absolutely no choice. If you have to use a portion of your savings, make sure that you save some to ensure that you are financially secure in the future.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Credit Cards
After a bankruptcy, you may not be able to receive any credit cards. If this happens to you, think about applying for a couple of secured credit cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. In time, it may be possible for you to obtain unsecured cards.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. It is necessary to be open regarding both the positive and negative aspects of your financial life. Telling the truth will allow you reach a solution that is feasible, given your current situation.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Only choose an attorney once all your concerns are answered to your satisfaction. It’s isn’t necessary to make a choice right away. So you have sufficient time to speak with a number of lawyers.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. All creditor relationships will be severed. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. Look into both types of bankruptcy before deciding which one would suit your particular needs.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. There are many recouses available to help you lower your payments and get back on track. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
After reading the previous article, it is obvious that bankruptcy is not something that takes place on its own. When dealing with a claim, you literally cannot afford to skip steps or to get anything wrong. When you implement the suggestions in this article, you can feel confident that you have covered all the bases with regard to bankruptcy filing.
This is a limited-time offer. We are not able to guarantee availability if you wait!
