Nowadays, there are many people experiencing the woes of overwhelming debt. Filing chapter 7 or 11 can be the last option for many people. If you have been going through this for a while, you might want to consider filing for bankruptcy. Continue on to the article below to see if bankruptcy is the right option for you.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Be sure your home is well protected. Filing for bankruptcy does not mean you have to lose your home. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. Check to see if you pass the requirements necessary to file for a homestead exemption.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Be sure you have no other choice but to seek bankruptcy. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. Bankruptcy cases are long, anxiety-filled experiences. It will also make it tough for you to secure credit after your filing is complete. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
Filing for bankruptcy is not the best choice if your monthly income is enough to cover your bills. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
If you have filed for Chapter 13 bankruptcy, you will still be allowed to apply for and receive a mortgage or car loan. However, it can be more difficult. You need to speak with your trustee so that you can be approved for a new loan. Draw up a budget, demonstrating that you can afford the new loan payment. You will always have to let them know why this item needs to be purchased.
File when the time is right. The timing of your filing could be important to its success. For some people, filing right away is best, however for others, waiting a while is best. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
Learn about the personal bankruptcy rules before petitioning. There are many traps in the bankruptcy laws that could trip up your case. It is even possible for your whole petition to be thrown out of court due to errors being made. Make sure you have a decent understanding of the bankruptcy process before you proceed. If you take care of this now, you can avoid problems going forward.
Don’t take big cash advances off your credit cards in the days prior to filing for bankruptcy. Doing so, is a type of fraud that may result in your having to pay back all money advanced from credit card accounts in the months just prior to your bankruptcy.
Don’t take too long when trying to decide whether you want to file bankruptcy. It might seem a little scary, but if you wait forever to act, you’ll just be waiting that much longer once you do ultimately file. Talk to a lawyer as soon as you can to get the advice that you need.
After filing for bankruptcy, many individuals vow they will avoid the use of credit cards and all forms of credit. However, this is not a good idea because it is desirable to heal your credit rating. You have to reestablish your credit once you hurt it, this way you can still position yourself to take out things, such as home or car loans, in the future. You can rebuild your credit slowly, beginning with just one credit card.
If you find it necessary to file bankruptcy, hire a bankruptcy attorney. Your lawyer can determine if you eve need to file, and if you do, act as an advocate in court and make the process go more smoothly. Your lawyer can also show you how to fill out the paperwork, file it properly and be there to answer any questions you may have.
As you now know, you have plenty of assistance available for filing bankruptcy. Tackling this in a logical and emotionless manner will relieve you of your debt issues while giving you a fresh start for the future.
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