There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. They have lots of collection agencies looking for them and they have trouble paying their bills. If this sounds like you and your situation, filing for bankruptcy may be a good idea for you. To find out if filing for personal bankruptcy is the right thing for you to do, read on.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If this sounds familiar, you should read up on the bankruptcy laws in your state. Each state has its own laws regarding personal bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. It is important to understand the laws in your state before filing for bankruptcy.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
You should never give up. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Speak with your attorney about filing the correct petition to get your property back.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, consumer credit counseling programs can help if your debt isn’t too large. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Chapter 13
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. All happenings with creditors will disappear. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Talk to the lawyer and not his assistant, who may not be legally able to help you. Be sure to check out a number of lawyers so that you will find one who is just right for you.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Spend time researching the advantages and disadvantages of filing for each one of these. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Bankruptcy should not be filed by anyone who makes more than their bills cost. Bankruptcy might seem like a good way to get out of paying your bills, but it will devastate your credit for the next ten years.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. 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 can help you get out of foreclosure. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. When all is said and done, the creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.
Pay attention to how you satisfy any personal debts before filing for bankruptcy. Check the bankruptcy laws in your state to make sure you have not done anything in the past year to make yourself ineligible to petition for bankruptcy. Read up on the rules before you make any decisions about your finances.
Understand that in the long run, a bankruptcy filing may be better than continued missed paymsent when it comes to your credit score. Bankruptcies can remain on your credit reports for 10 years, you can jump right into repairing your credit. This is why people call bankruptcy a fresh start.
Personal Items
Remember that just because you have filed for personal bankruptcy it will not cause you to lose everything you own. Many times you will be allowed to keep your personal property. You may keep personal items like jewelry, household furnishings, clothes and electronics. The personal items that you are allowed to keep will depend on your home state’s individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.
Exercise some care when you pick a lawyer to help you file for bankruptcy. This type of law is a popular attraction for inexperienced newcomers. Often times, people choose lawyers that aren’t licensed properly or that don’t have enough experience. Don’t fall victim to this. One resource that should prove extremely helpful is the Internet. You should be able to find the lawyer’s record online, as well as reviews from their previous clients.
As you’ve read here, there are many places to find help if you are thinking about personal bankruptcy. If you take a rational, methodical approach, you’ll soon be experiencing the fresh start you’ve been waiting for.
This is a limited-time offer. We are not able to guarantee availability if you wait!
