Learning more about the process of bankruptcy is, sadly, something that a lot more people have to do today. The recent downturn in the economy has only exacerbated the situation. Before deciding to seek bankruptcy, you need to know the right information and what to expect; that way, you will make better decisions. The following tips are going to help clarify some bankruptcy confusion for you.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. Many sites, including the U.S. Check out the Bankruptcy Institute site and do some research about consumer’s rights. 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.
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. This being the case, look at secured card options. That will show lenders that you are committed to rebuilding your credit. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The Bankruptcy Code has lists of various asset types that are exempt during the process. You need to read the exemptions for your state, so you know what property you can protect. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Do not despair, as it’s not the end of the world. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Consult with a lawyer who can advise you on what you need to do to file a petition.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Only make your decision if all your questions and concerns are adequately addressed. You need not decide right away. You have lots of time for consulting with other lawyers.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Keep up with your current state’s laws and regulations to figure out what steps you should take.
It is important to protect your home when filing bankruptcy. Bankruptcy doesn’t always mean you’ll lose your home. There are mitigating factors, such as lose of value, or multiple mortgages. You are still going to want to check into homestead exemption either way just in case.
Determine if bankruptcy is necessary. It might be possible to consolidate some of your debt instead. Bankruptcy cases are long, anxiety-filled experiences. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. This is why you must make sure bankruptcy is your last resort.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy, if you chose to file. 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. You can secure your home under Chapter 13 and pay your debts with a payment plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Bankruptcy is extremely popular nowadays due to the terrible economy. By using the information you’ve read here, you can now make sound decisions about your finances and choose the bankruptcy option that will work best for you.
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