Although going through bankruptcy can be very hard, it is sometimes necessary. When going through this process it is best you have a lot of knowledge on what is about to take place. Continue to read this article to learn what has helped others who have filed for bankruptcy.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If this is happening to you, then learn about the laws where you live. Bankruptcy rules vary by jurisdiction. Your house is safe in certain states; however, in other states, it isn’t. Do not file before learning about the bankruptcy laws in your state.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
When a bankruptcy is imminent, retain a lawyer immediately. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. Before making any decisions, discuss the information you have learned with your lawyer.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
It is important to understand your rights when you file for bankruptcy. It is not unusual for creditors to claim that their debt is not able to be discharged. There are not many debts that can not be bankrupted, student loans and child support for example. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
Keep the concept of shame out of your head if you are contemplating bankruptcy. It is not uncommon for bankruptcies to elicit feelings of guilt, remorse and embarrassment. These sorts of feelings are not helpful to you. Indeed, they may cause you mental anguish. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Realize that bankruptcy, ultimately, might be better for your credit than continuing to make late payments or miss payments on your debt. Although filing for bankruptcy stays on your financial record for 10 years, you can immediately begin to improve your credit. A fresh start is a great benefit of bankruptcy.
Declaring bankruptcy is not something most people aspire to, but can be unavoidable. Having read the thoughts presented here, you can rest assured that you have received information from someone who has faced the very difficulties you face today. You will find that every journey in life goes more smoothly if you heed the advice of those who go before you, and this one is no different.
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