Just thinking about bankruptcy is a scary thought for many people. Increasing debt, along with being unable to support a family can be an actual nightmare for some. If this troubles you, or if you are dealing with this nightmare now, the following information is required reading.
If you can, get a word-of-mouth referral for a lawyer. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Be sure to weigh all of your options before deciding to file for personal bankruptcy. For example, you want to look into credit counseling. This is the best option for small debts. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Make certain that you comprehend the differences between Chapters 7 and 13. Every one of your debts will be gone if you decide to go with Chapter 7. Any ties that you have with creditors will be dissolved. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Unsecured Debt
Consider Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Don’t automatically assume that bankruptcy is your only option. There are many recouses available to help you lower your payments and get back on track. Loan modification plans can be helpful for those facing foreclosure. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. Most creditors will be willing to work out an option to avoid not getting paid at all.
Speak with your attorney about ways you can keep your car. Filing under Chapter 7 is usually a good way to lower your payments. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
Chapter 7
Think about any co-debtors you have prior to filing for Chapter 7 bankruptcy. When you file a Chapter 7, your debts will be dissolved. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
Forget about detrimental terms, such as shame, when you are filing for personal bankruptcy. Going through bankruptcy can cause you to lose a lot of self-esteem. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. The best way of dealing with bankruptcy is to keep a positive attitude during this time of financial upset.
As you are heading towards a bankruptcy filing, don’t be tempted to run up cash advances on your credit cards in the belief they will be erased in the legal proceedings. Not only is this fraud, but you could still be liable to repay the money at the end of the day.
List any debt you have. This will be your basis in filing for bankruptcy, so see to it that you write down all of the debts you’re aware of. Write down the exact amount. Don’t just guess. Remember to take your time here. Rushing through will ensure that some numbers somewhere will be mixed up and then the process will blow up in your face.
Once your bankruptcy has been complete for a month or two, acquire multiple copies of credit reports. Scrutinize the information, and make sure all debts that should be discharged are and that all of your previous credit accounts are closed. Address any mistakes or issues that you find so you can be on your way to better credit.
Just because you got alternative employment just prior to filing should not make a difference to your plans. Although you have a new job, bankruptcy may still be right for your situation. The timing of your filing is also going to be important. If begin to file before getting your money, your income will not be considered when repayment options are discussed.
People who fear bankruptcy are wise to do so, because it is never a pleasant experience. Even though you may be afraid, the following article can remove some of the mystery for you. Take advantage of all the suggestions you’ve read here so that you can get your finances on the right track.
This is a limited-time offer. We are not able to guarantee availability if you wait!
