Just thinking of filing for bankruptcy can scare a person. Not being able to provide for their loved ones and debt that continues to mount is an issue for many. If this applies to you, or if you are worried about it happening, this article can help.
Do not be afraid to remind your attorney of important specifics of your case. Don’t assume that they’ll remember something important later without having a reminder. Speak up. This is your life, and your future depends on it.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. One example would be that a consumer credit program for counseling if you have small debts. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Interviewing multiple attorneys is a good way to find the best fit.
Make sure your home is safe. Filing bankruptcy does not necessarily mean that you will lose your house. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Research Chapter 13 bankruptcy, and see if it might be right for you. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Keep in mind that missed payments will trigger dismissal of your case.
Being with the people who you love should be still be a top priority. Filing for bankruptcy is a difficult process. It is long, stressful and makes people feel like losers. 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. Remember that it is not your families fault for your financial hardships and use this time to pull together and be strong.
Before you file for personal bankruptcy, weigh all of your options. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing. If you are facing foreclosure, consider a loan modification plan. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. Creditors want to recoup the most money possible from debtors, and they can often get more through debt repayment plans than bankruptcy procedures.
People who fear bankruptcy are wise to do so, because it is never a pleasant experience. That said, the best antidote to fear is information, and this article has given you that in spades. Take the info shared here and apply it to your situation where needed so that you can move forward to a brighter future again.
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