Bankruptcy definitely causes short-term stress, but if you’re responsible, it can be a relief in the long term. On one side, you will need to handle a lot of people looking into your personal finances. Then again, after your debts have been discharged, you can begin rebuilding finances and stopping those calls from bill collectors. If you would like to make filing for personal bankruptcy much easier, simply follow the steps we present here.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If this is happening to you, then learn about the laws where you live. Laws differ from one state to the other. In some states, your home is protected, while in others it is not. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Do not give up. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Consult with a lawyer that can walk you through the filing process.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy for your filing. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. You can secure your home under Chapter 13 and pay your debts with a payment plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Just know that missing one payment could cause your case to be dismissed.
Once your initial filing is complete, it is time to take some time to relax a little. A lot of debtors usually get stressed when they file. That stress could lead to complete depression, if you do not take the necessary steps to fight it. Once your petition is in the hands of the judge, all you can do is wait.
Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. It is a little more difficult, though. You need to speak with your trustee so that you can be approved for a new loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. You should also be prepared to explain why you need to purchase the item.
Consider all available options before deciding to file for personal bankruptcy. Consider credit counseling. A number of non-profit companies can assist you. With their assistance, you can reduce the payments you have to make and even get some of the interest removed from your debts. You’ll make your payments to the company, and the company will pay off your creditors.
Go over the debts you are currently paying off before filing for bankruptcy. Bankruptcy law may actually prevent you from repaying your credits for three months. Worse, if you’ve taken out a loan from your family, you can’t repay them for a whole year before filing. Find out more about legal requirements before making your decision.
Don’t drag your feet figuring out if bankruptcy is the right thing to do. Your debt will only continue to mount as you waiver on the decision, difficult as it might be. When you speak with a professional quickly, you will get valuable advice that will help to prevent your situation from spinning out of control.
One thing to consider is that filing bankruptcy might be a better alternative to making late payments or missing payments completely. Of course, bankruptcy hurts your credit for up to ten years, but you can begin to re-build your credit immediately. Bankruptcy can give you the fresh start you need.
Contrary to popular belief, you won’t necessarily lose your assets if you happen to file for bankruptcy. You can keep some personal property. This includes some jewelry, clothing, household furnishing, electronics and more. This will depend on your state’s laws, the type of bankruptcy you file for, and your financial situation, but you may be able to retain large assets like your home and car.
Bankruptcy is a process that has both benefits and drawbacks. Regardless of what your reason for declaring bankruptcy is, it is vital that you keep informed and involved in the entire process. The advice you have been provided with has probably helped you better understand bankruptcy. Utilize this advice, and you’ll discover that you’ll be feeling a lot better.
This is a limited-time offer. We are not able to guarantee availability if you wait!
