We are in a difficult economic state these days. Because of the state of the economy, a lot of people have been let go from their jobs and have acquired debt. Debts can result in filing for bankruptcy, which can seem to be a terrible thing. If you, a friend, or a loved one is in financial trouble, this article could help decide if bankruptcy is the right option.
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. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
After a bankruptcy, you may not be able to receive any credit cards. This being the case, look at secured card options. You can exhibit your desire to rebuild your credit this way. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
If you can, get a word-of-mouth referral for a lawyer. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
Keep with what you have decided to do. Many times you can get repossess property back once bankruptcy has been filed. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Speak to a lawyer who will be able to help you file the necessary paperwork.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Bankruptcy laws change a lot and before making the decision to file, you need to know what you are getting yourself into. Keep up with your current state’s laws and regulations to figure out what steps you should take.
Chapter 13
You need to educate yourself on the differences between Chapter 7 and Chapter 13. In Chapter 7 most of your outstanding accounts will essentially be erased. Your former ties with creditors will cease to exist. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. Both options have advantages and drawbacks, so do your research before deciding.
Make time to visit with family and friends during the bankruptcy process. Going through a bankruptcy can be an excruciating experience. The long process can leave people stressed out and racked with guilt and shame over having their financial affairs laid out for everyone to see. Lots of people decide they should hide from everyone else until it is all over. This is not a good idea because staying alone could cause serious problems with depression. Therefore, meet this challenge head on and surround yourself with caring family members so you can get through this difficult financial situation.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. It’s a bit more difficult, though. You will have to see your trustee and the approval for this new loan. You need to develop a budget and show that you will be able to afford the new payment. You will need to be able to explain why the purchase is necessary.
Be certain to have a good understanding of bankruptcy regulations prior to filing a petition. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. Also, it is illegal to load up your credit cards with debt right before filing occurs.
When filing for bankruptcy, ensure you have listed all of your financial obligations. If you do not complete your financial profile your case could be delayed or dismissed. No sum is too small to be included; err on the side of caution and include everything. Financial information should include all income, assets and loans.
Don’t just assume bankruptcy is the right option, especially if you have not considered others. Consider credit counseling. There are various non-profit companies that may be able to help you. Their job is to lower your payments and interest through negotiations with your creditors. All you have to do is give them your payments and they handle paying the creditors.
Go over the debts you are currently paying off before filing for bankruptcy. Bankruptcy laws generally prohibit certain creditors from being paid back 90 days before filing and family can be around a year! Know what the laws are prior to making any payments.
The economy is not in great shape right now, and although things are slowly getting better, there are still large numbers of people out of work and in debt. If you lack a steady job, you still may be able to prevent the need for a bankruptcy filing. With any luck, you now see that options exist to help you steer clear of bankruptcy. May good fortune be with you.
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