When filing for bankruptcy, it is best not take the process lightly! Do not file unless you fully understand the consequences and implications. The tips and advice you will learn in this article will show you the proper direction to take. No matter what decisions must be made, they are easier to make with solid information.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Whoever provides your legal consultation must be privy to all of your financial information. Being honest is both the right thing to do and, moreover, it is required by law.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. 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.
Be aware of recent changes, if any, in the bankruptcy code. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. To know what these changes are, go to your state’s website or contact the legislative offices.
Chapter 7
Know the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is the best option to erase your debts for good. Any ties that you have with creditors will be dissolved. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It is vital that you know the differences between these types of bankruptcies, in order to find the option that’s best for you.
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. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Your most important concern is to protect your home. Filing for bankruptcy does not mean you have to lose your home. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Chapter 13
Look into filing Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Before proceeding with your bankruptcy, it’s a good idea to start spending ample time with the people you care about most. Going through bankruptcy is difficult. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. Some people do not even want to speak with others until the bankruptcy is official. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
Personal Bankruptcy
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. If you are about to lose your house, talk to your lender about a loan modification. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. Most creditors will be willing to work out an option to avoid not getting paid at all.
If you have filed for Chapter 13 bankruptcy, you will still be allowed to apply for and receive a mortgage or car loan. However, it can be more difficult. Your trustee can help you acquire a new loan. You will need to come up with a budget and show that this new loan payment schedule is doable. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
You can easily see that there are multiple ways to handle personal bankruptcy. Don’t be overwhelmed by the vast amount of information available. Sit back and soak in all that you read here. Doing this will allow all the information to be processed and benefit your decision making going forward.
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