Stress, anxiety and depression are emotions many people feel when they are faced with bankruptcy. Do not let your emotions get the best of you, you can clear up your life and stop worrying as much. Bankruptcy should be looked at as a way to move forward, and get things back on the right financial track again. This article will help you understand how.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Bankruptcy rules vary by jurisdiction. For instance, in some states you can keep your home and car, while other states prohibit this. Be aware of bankruptcy laws before filing your claim.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
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 is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
Never lie about anything in your bankruptcy petition. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Bankruptcy Laws
Before you file, make sure you understand current bankruptcy laws. 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.
Think carefully about your different options before filing for bankruptcy. For example, you want to look into credit counseling. This is the best option for small debts. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Unsecured Debt
Look into filing Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
This article should have enabled you to feel a little more confident about your personal bankruptcy. Although it is hard at first, you will get through it. Using the tips you have learned here, you can start to pull yourself out of the financial hole you are in.
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