The circumstances that culminate in a bankruptcy filing are likely unpleasant, though they do not need to define the rest of your life. Bankruptcy exists in order to provide you with a fresh start. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
Bankruptcy Laws
Many people need to file for bankruptcy when they owe more money than they can pay off. Study the laws in you state to learn what you need to do and what your options are. You will find that each state has their own bankruptcy laws. You may find your home is safeguarded in one state, while in another it isn’t. Become acquainted with local bankruptcy laws before filing.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States Some valuable resources include the U.S. Dept of Justice and American Bankruptcy Institute. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
Ask yourself if filing for bankruptcy is truly your best option. Look into other options, such as consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Consult with a lawyer who can help you along with filing the petition.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 eliminates all debts. Your ties with all creditors will get dissolved. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Research Chapter 13 bankruptcy, and see if it might be right for you. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. However, if you miss even one payment, the court will dismiss your entire case.
Bankruptcy can be a good time to spend time with people you love. Going through bankruptcy is a lot of stress. At the end of the process, many people are left with feelings of shame and worthlessness. It can be hard to face the world while the bankruptcy process is taking place. Pulling away from people who care for you will not help the situation, and can cause your negative feelings to intensify. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
Filing for bankruptcy should not be done on a whim. Before filing, talk with an attorney who can help you weigh all of your options. Look into loan modification plans if you need to deal with an imminent foreclosure. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. Most creditors will be willing to work out an option to avoid not getting paid at all.
As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. Even though that is the case, you should not allow it to depress you in any way. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!
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