Many people are terrified every time to hear the word bankruptcy. Growing debt, along with insufficient income to support a family, can make life seem unbearable. The following advice will greatly help you if bankruptcy is a fear of yours.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Penalties may include fines, imprisonment or denial of the filing. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Do some research to find out more about Chapter 13 and Chapter 7. Chapter 7 bankruptcy completely wipes out your debt. This includes creditors and your relationship with them will become no longer existent. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. Both options have advantages and drawbacks, so do your research before deciding.
Filing Bankruptcy
It is important to protect your home when filing bankruptcy. Filing bankruptcy does not necessarily mean that you will lose your house. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Bankruptcy can be a good time to spend time with people you love. Filing for bankruptcy is a difficult process. It is long, hard and sometimes leaves people feeling guilty or ashamed. Many people decide to hide away from the world until the process is over. However, this isolation will just make you feel worse, and it could cause you to be depressed. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
Once the initial filing period is over, ensure that you are getting out and enjoying life. The filing process is extremely stressful for a lot of the people who go through it. This stress may lead to something worse like depression, so do what you can to fight that from happening. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. You can often lower your payment using Chapter 7 bankruptcy. The vehicle must have been obtained more than 90 days before filing and be a loan with high interest. You must also have consistent work history.
If you decide to file for bankruptcy, it’s important that you’re educated about your rights. You might hear from your creditors that your debts cannot be canceled through bankruptcy. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
Consider all of your options before filing for bankruptcy. You might want to look into the possibility of credit counseling instead. There are even non-profit companies that may be able to help you. They can work with both you and your creditors to find a feasible way in which your debts can be paid off. Once you pay them, they make the payments to your creditors.
Do not use credit cards for cash advances prior to filing a bankruptcy petition, as it can affect the dischargeability of the debt. Not only is this fraud, but you could still be liable to repay the money at the end of the day.
Understand that in the long run, a bankruptcy filing may be better than continued missed paymsent when it comes to your credit score. Though bankruptcies can remain on your credit record for 10 years, it is possible to begin credit repair initiatives immediately. A fresh start is a great benefit of bankruptcy.
Those who fear bankruptcy have a good reason to do so: It can be a downright scary experience! While you may have been frightened of bankruptcy in the past, you don’t need to be scared anymore. This article has armed you with information. Use the bankruptcy information in this article to make your financial life yours again.
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