Just thinking about bankruptcy is a scary thought for many people. It is only natural that people are afraid of skyrocketing debt that causes hardship for themselves and their family members. If you are in a situation that may require a bankruptcy filing, don’t let fear overcome you. Read this article and learn valuable tips and advice to make this scary situation much more manageable.
Learn as much as you can about bankruptcy by going to informational websites. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Don’t throw in the towel. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. After the consultation, you are not immediately required to come up with a decision. That gives you the chance to speak to a number of lawyers.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, consumer credit counseling programs can help if your debt isn’t too large. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
It is imperative that you know for sure that bankruptcy is the option you need. Consolidation could be the avenue you need to get your finances back in order. It can be quite stressful to undergo the lengthy process of filing for personal bankruptcy. It will have a major effect on your credit as time goes on. This is why it is crucial that you explore your other debt relief options first.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. 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.
Those who are afraid of bankruptcy are entirely justified; it often can be a frightening experience. However, bankruptcy is not the end of the world, and this article is here to help you understand how not to be overwhelmed by it. The advice in this article will make the idea of filing for bankruptcy a little easier for both you and your family.
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