Debt has become a problem for many people facing this tough economy. Debt continues to mount while collection phone calls continue to rise. Filing for bankruptcy might be the best option for you. The information in this article will help you to decide if this is an option for you.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Bankruptcy laws vary from state to state. Your house is safe in certain states; however, in other states, it isn’t. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Your attorney and trustee should be privy to all information about your finances. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. Those with smaller debts may find use in a program for consumer credit counseling. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Chapter 7
Be sure you know how Chapter 7 and Chapter 13 differ. In Chapter 7 most of your outstanding accounts will essentially be erased. This includes creditors and your relationship with them will become no longer existent. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Interviewing multiple attorneys is a good way to find the best fit.
Take steps to ensure your home is protected. Filing for bankruptcy does not guarantee that you will lose your house. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. Before making any decisions, discuss the information you have learned with your lawyer.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy, if you chose to file. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. 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.
Bankruptcy is a hard thing to experience and it could create both emotional and mental stress. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Don’t allow cost to determine who you hire. Your attorney does not need to cost a lot, but they do need to have a lot of experience. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
As you’ve read here, there are many places to find help if you are thinking about personal bankruptcy. If you go into the process armed with knowledge and confidence, you can wipe away your debt and give yourself a fresh start.
This is a limited-time offer. We are not able to guarantee availability if you wait!
