Filing for personal bankruptcy is nothing kid around about. There are many factors involved in the bankruptcy process and it is crucial that you understand them. Make sure to use what you learned from this article to make the right decisions. Just make sure you do enough research so that you are more prepared for any future obstacles.
Bankruptcy Laws
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. You will find that each state has their own bankruptcy laws. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Be aware of bankruptcy laws before filing your claim.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. Many sites, including the U.S. Some valuable resources include the U.S. Dept of Justice and American Bankruptcy Institute. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You need to read the exemptions for your state, so you know what property you can protect. If you aren’t aware of this, you could lose some assets that you value.
Chapter 13 Bankruptcy
Thing about filing a Chapter 13 bankruptcy. 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. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Consider that if you even miss one payment, your case will not be considered by the court.
Before declaring bankruptcy, it is important to know your rights. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
Be certain you are totally aware of the laws of bankruptcy before you file. As an example, it is prohibited for someone to transfer assets from the filer’s name for one year prior to filing. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
Do not forget to list each and every debt you have. Leaving out information either purposely or by mistake can prolong your petition, or have it dismissed completely. It is better to have something on there that you are unsure about, rather than not include it at all and risk a dismissal. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
Consider other options prior to filing for personal bankruptcy. Perhaps credit counseling can resolve your issues. There are many different non-profit companies that can help you. These companies work with creditors to reduce your payments and interest. Once you pay them, they make the payments to your creditors.
As you have seen, filing for personal bankruptcy can be complicated. Do not let this information overwhelm you! Take some time to figure things out. Doing this will allow all the information to be processed and benefit your decision making going forward.
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