Should You Make The Step To Personal Bankruptcy?

Filing bankruptcy is a bit complicated. Different bankruptcy filing types are available, and the right one for you will depend on the kinds of debts you have and your overall financial picture. Prior to filing your petition, you really need to gain an understanding of how personal bankruptcies work. In the following paragraphs, you’ll find some tips that will get you off to a good start.

You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Telling the truth will allow you reach a solution that is feasible, given your current situation.

Keep with what you have decided to do. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Speak with a lawyer that will provide you with guidance for the entire thing.

Chapter 7

Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7 eliminates all debts. Your former ties with creditors will cease to exist. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. It is vital that you know the differences between these types of bankruptcies, in order to find the option that’s best for you.

Make sure that you really need to file for bankruptcy. Perhaps just consolidating some of your existing debt, could make them easier to manage. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. Your future credit will be affected by these actions. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.

Chapter 13 Bankruptcy

Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.

Do not forget to enjoy life a little once you get through the initial filing process. It is common for people to stress when filing. This stress could morph into clinical depression, if you fail to adequately address the problem. 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.

Bankruptcy can be overwhelming to most people, and can be quite stressful. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Look beyond the fees a lawyer charges when you make your hiring decision. When it comes to choosing the right attorney, consider quality before cost. Ask people who have used a bankruptcy lawyer for referrals, look them up at your local Better Business Bureau, then schedule free consultations in order to interview them. Consider attending a court hearing so you can witness how the lawyer operates.

A lot of people who file for bankruptcy swear they will never use credit of any kind ever again. This isn’t necessarily a good strategy to follow since establishing good credit goes hand-in-hand with getting, and handling, credit in a responsible manner. Without rebuilding your credit through the use of new credit, you will have trouble with future purchases that require good credit. To start, use one credit card sparingly and pay it off in full each month.

Before you decide to file a bankruptcy claim, you need to first come to realization that it’s time to start living a more financially responsible life. This includes borrowing money from friends, you want to create a clean slate when you file for bankruptcy. Determinations on whether to grant a bankruptcy are made after looking at your entire record; current history in addition to past issues. Try demonstrating that your current behavior and financial habits have positively changed.

List each of your debts clearly and efficiently. You will need this list when you file, so it is important for it to be as compete as possible. Be sure to verify the exact amount of each debt you owe by checking paperwork or calling your creditors. Take your time with the process of filing for personal bankruptcy. It is important that all of the numbers and debts included in your case be included accurately.

A few months after bankruptcy is complete, get your credit report copies from the 3 credit reporting agencies. You want to see an accurate record of the closure of your accounts and the discharge of your debts. You want to start building up your credit score from an accurate base, so it’s important to address any errors you find in your reports immediately.

Chapter 7

If you file a Chapter 7 bankruptcy only to find that you are not qualified to use the homestead exemption, you might be able to put place your mortgage in a Chapter 13 case. You may be better off converting your Chapter 7 filing to a Chapter 13 bankruptcy, and it is important to talk to an experienced attorney regarding your next move.

As you can see, you should give bankruptcy a lot of thought before deciding whether or not you should file. With your finances in turmoil, seek a reputable attorney who has bankruptcy experience. This will allow you to see this as a true, fresh experience.