In order to file a bankruptcy claim, you will run into more than a couple of complicated hurdles to jump. There is not simply one type of bankruptcy, so the choice you make will be determined by your debts and what finances you have. Therefore, it is essential that you learn about bankruptcy prior to petitioning the courts for bankruptcy protection. This article has information that can help you.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. Look into other options, such as consumer credit counseling. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
Seek a less serious option prior to filing for bankruptcy. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Do what you can to keep your home. There are many options available to help protect you from losing your home. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Debt Repayment Plan
Filing for bankruptcy should not be done on a whim. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
If you really want to keep your vehicle, speak with your lawyer about possible choices. In many cases, Chapter 7 bankruptcy can lower your payments. The car loan must have been initiated prior to 910 days before your petition. It must carry a loan with high interest. You should also have a steady history of work.
Prior to filing for bankruptcy, purge from your vocabulary the word “shame”. Feelings of low self-worth, shame and guilt are common for those who have come to the point where bankruptcy is their only option. Do not let these negative feelings influence your decision. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Filing for bankruptcy can cause stress. If you want to protect yourself from stress, see to it that you hire a good attorney. Don’t let cost be the sole factor in who you hire. You do need someone who is costly, just someone who is good at what they do. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. Try to get a referral from a trusted friend or family member.
Before you file your petition, be sure that you understand personal bankruptcy rules. You want to understand what is going to happen when you file for your specific case. A variety of mistakes will lead to dismissal of your case. Make sure you have a decent understanding of the bankruptcy process before you proceed. This will help your process go smoother.
Consolidate a list of what you owe. Only the debts you list on your bankruptcy filing will be discharged, so make sure all of them are included. Be sure you’re going through every record so you can be sure you’re getting the right amounts. Take your time during this process; don’t rush and make sure all of your figures are correct.
Make your decision wisely when you select a bankruptcy attorney. This kind of law is popular among inexperienced lawyers. It is crucial that your lawyer has the proper licensing and has plenty of experience. Use the Internet to look at lawyer’s disciplinary records, background, and client ratings.
Obtain copies of all credit reports about six months after the bankruptcy petition has been approved. Errors occur, so make sure things appear exactly as they should. If you notice any errors, address them immediately so you can start rebuilding your credit.
Obviously you see the necessity for proper planning and decision-making in before you file. If you know what makes sense for you, you can work with an experienced bankruptcy lawyer and get ready to experience a clean financial slate.
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