The economy is bad looking these days. When there is a bad economy there are a lot of people losing their jobs and having problems with debt. Many of these debts end up in bankruptcy filings, which just makes the problem worse. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If you are in this position, you need to be familiar with the laws in your area. Bankruptcy laws vary from state to state. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. You should be aware of local bankruptcy laws before filing.
If a personal recommendation comes your way, this should be a lawyer you focus on. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Don’t hide assets or liabilities when filing for bankruptcy. Whomever you use to file with must know everything there is to know about your finances, both good and bad. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
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 specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Look for a lawyer who you can relate to.
Before filing for bankruptcy ensure that the need is there. Maybe you can just consolidate debt to make it simpler to deal with. It can be quite stressful to undergo the lengthy process of filing for personal bankruptcy. It will certainly affect the credit rating that you have in the future. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Chapter 13
If you are going to be filing for bankruptcy, think about filing Chapter 13. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. You can secure your home under Chapter 13 and pay your debts with a payment plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Just know that missing one payment could cause your case to be dismissed.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. Loan modification plans on home loans are a great example of this. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. After all is said and done, your creditors will still want their money. For this reason, you may wish to investigate debt repayment programs in lieu of bankruptcy programs.
As stated from the above article, the economy right now not in the best of shape and lots of people are hurting financially. There are some things that can be done to prevent filing for personal bankruptcy even for those who have no steady income. Hopefully this article has provided you with some tips to keep yourself, or someone else, from having to file for bankruptcy. Hopefully, you have the best luck.
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