Just the thought of bankruptcy creeping up on you, can make you fearful to say the least. From fears of growing debt to worrying that they’ll no longer be able to provide for their families, people have good reasons to be scared. If you’re afraid of this scenario (or worse if you are living at), it is our sincere hope that the advice given here will be of help to you.
Before undertaking the bankruptcy process, ensure you have made the correct decision. There are plenty of other options open to you, like consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Don’t just assume that the attorney will remember it automatically. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
If you can, get a word-of-mouth referral for a lawyer. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. You do not have to give them your decision right after the consultation. Take the time to meet with a number of attorneys.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Talk to the lawyer and not his assistant, who may not be legally able to help you. Searching for the best lawyer will help you located the comfort you need during this time.
Unsecured Debt
Find out more about Chapter 13. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
If you make more money than what you owe, filing for bankruptcy is not a good option. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
Before you file for personal bankruptcy, weigh all of your options. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. Loan modification plans can help if you are dealing with foreclosure. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
Before filing for bankruptcy, learn your rights. Bill collectors will lie to you and say you can’t have their bill discharged. There are a few debts that cannot be cleared, such as student loans and child support, but be sure to know the details when dealing with debt collectors. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Include your entire financial information when you file for bankruptcy. You can delay your bankruptcy process if you do not add in all important information. It does not matter what you think of your financial situation, put the sum amount either way. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Those who fear bankruptcy have a good reason to do so: It can be a downright scary experience! While you may have been frightened of bankruptcy in the past, you don’t need to be scared anymore. This article has armed you with information. 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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