Sadly, bankruptcy is now a household word. Not only the economy, mind you, but people’s spending habits are also to blame for the increase in claims filed. Before you file for personal bankruptcy, educate yourself about the subject, so you make the right decisions. This article will provide you with that information.
When people owe more than what can pay, they have the option of filing for bankruptcy. If this is your case, you should do some research about bankruptcy laws in your state. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. In some areas, your residence may be completely exempt, but in others, it will not be. Familiarize yourself with the bankruptcy laws of your state prior to filing.
Personal Bankruptcy
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States Department of Justice and American Bankruptcy Institute are two such places to look. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Always be honest and forthright when it comes to your bankruptcy petition. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Secured Card
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will prove that you want to improve your credit score. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. It is necessary to be open regarding both the positive and negative aspects of your financial life. Don’t withhold information, and create a smart way of coping with the reality of the situation.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Make your decision after all of your questions have been answered. After your consultation, take your time to make your decision. You could even go to different lawyers for advice.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Chapter 13
Do some research to find out more about Chapter 13 and Chapter 7. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. All happenings with creditors will disappear. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Learn what you can about Chapter 13 bankruptcies. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Keep in mind that missed payments will trigger dismissal of your case.
Don’t wait until the last minute to file bankruptcy. It is quite common for people to linger on hoping that their financial difficulties will somehow resolve; however, this very rarely happens. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. As soon as you stop denying that your debt is unmanageable, seek the advice of a good bankruptcy attorney.
Before you file, make sure you understand the laws as much as possible. There are many pitfalls you can easily fall into, such as transferring away assets to prevent them from being included in the filing. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
There are a lot of things to consider prior to filing for bankruptcy. Credit counseling is an important option for you to pursue. There are various non-profit companies that may be able to help you. They can work with both you and your creditors to find a feasible way in which your debts can be paid off. They act as intermediaries between you and your creditors; you pay the counselors and they pay the companies to which you owe money.
Clearly, the economy nowadays has had a dreadful effect on individuals and has caused bankruptcy to be a topic that is on everyone’s minds. When deciding how to tackle your bankruptcy, make sure that you employ the advice that you read here.
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