When a person has to file bankruptcy, they may feel anger or frustration. Unfortunately, people experiencing bankruptcy often find themselves spending a large amount of their time worrying about day-to-day issues and expenses. There is always a way for someone work through personal bankruptcy, as will be shown through the following tips.
Before filing for personal bankruptcy, make sure you are doing the right thing. You can find services like counseling for credit that consumers can use. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
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 many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
It is important to understand your rights when filing bankruptcy. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. 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. Talk to a lawyer for help with the petition filing process.
Chapter 7
You need to educate yourself on the differences between Chapter 7 and Chapter 13. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. You will no longer be liable for any money that you owe to your creditors. 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. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Talk to the lawyer and not his assistant, who may not be legally able to help you. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy for your filing. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Now after reading the above article, you should be aware of the many options that can help you once you file for bankruptcy. It may seem like a daunting task at first, but you can make it through your bankruptcy. By using the advice that has been given to you, you can find a way to clear up your personal debt.
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