Filing for personal bankruptcy is quite a complicated process. There are different types of bankruptcy, and the type that you choose depends upon your personal finances and the nature of your debts. The most important step you can take, of course, is to learn what you can about the process before ultimately deciding one way or the other. The below advice can assist you in beginning.
When people owe more than what can pay, they have the option of filing for bankruptcy. If this is the case for you, you should begin to investigate the legislation in your state. Different states have different laws regarding bankruptcy. In some states, your home is protected, while in others it is not. It is important to be cognizant of the laws in your state before filing for bankruptcy.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Unless there is no other choice a retirement account should not be used. Your savings accounts offer valuable financial security so try to leave them intact.
Don’t fear reminding your attorney of any specific details of your case. Inaccurate or incomplete information can lead to your petition being denied. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Spend time researching the advantages and disadvantages of filing for each one of these. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Chapter 13
You could see about filing for Chapter 13 personal bankruptcy. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. There will, however, be obstacles. Your trustee must approve any new loans. Create a budget and prove that you will be able to afford it. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Before you file, make sure you understand the laws as much as possible. Did you know that in some areas, you cannot transfer assets from yourself to another person in the year previous to filing occurring? Also, the filer can not increase their debt before filing.
Before filing for bankruptcy, it is important to still be smart with your finances. Don’t start racking up debt and don’t start up more dept before bankruptcy. Bankruptcy judges and creditors may examine current and past behavior as they work to resolve your case. Having recent good financial behavior, regardless of how short of a time period, is better than no good behavior at all.
You do not have to lose everything you own when filing for bankruptcy. It is possible for you to keep your personal property. These personal items include clothing, jewelry, household furnishings, electronics and other similar items. While this varies based on the laws in your area, your particular circumstances and the kind of bankruptcy you choose to go with, it may be possible to keep big-ticket items like your automobile or even your residence.
Divorce can unexpectedly leave people in financial ruins. It is not uncommon for individuals to seek a divorce only to immediately file for bankruptcy due to unforeseen financial difficulty. If divorce is imminent in your future, then you may want to plan your finances accordingly so you are not forced to file for bankruptcy.
Once you have met with an attorney, you may be given a telephone number for your creditors to confirm you are filing bankruptcy. When a debt collector calls the number, they will be able to obtain verification that your personal debt is in the process of bankruptcy filing. Once this is done, they will cease and desist calling you.
Chapter 13 Bankruptcy
After you have filed for chapter seven bankruptcy, you may find that you are not qualified to take the homestead exemption. If this is the case, you may wish to file for chapter 13 bankruptcy in regards to your mortgage. 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.
If your lawyer doesn’t have sufficient experience with bankruptcies, you could be wasting your time. There are numerous attorneys available to assist you with your case. It’s tempting to get it over with and hire the first one you talk to, but you’ll want to ensure that they have the necessary experience.
You likely now understand that bankruptcy is something that should be undertaken carefully and with great deliberation. If it’s the best course of action for your current financial situation, then be sure to find an attorney with a lot of experience with personal bankruptcy so that you may be able to have a better financial future.
This is a limited-time offer. We are not able to guarantee availability if you wait!
