Just thinking about bankruptcy can frighten people. Ever increasing debt, along with the difficulty of supporting a family is very frightening for some people. If this troubles you, or if you are dealing with this nightmare now, the following information is required reading.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If this sounds familiar, you should read up on the bankruptcy laws in your state. 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. Familiarize yourself with the bankruptcy laws of your state prior to filing.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Never give up. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Get help from your lawyer to file a petition so you can get your items back.
Ask for a free consultation with your bankruptcy attorney and ask questions about experience and education. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Choose to file only if your lawyer has convinced you that this is the best decision. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. Consulting with several attorneys will also help you find someone you trust.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. Those with smaller debts may find use in a program for consumer credit counseling. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
Chapter 13
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Under Chapter 7 type bankruptcy, all debts are forgiven. Any ties that you have with creditors will be dissolved. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Isolate Yourself
Don’t isolate yourself from family and friends. Bankruptcy can really wear down your emotional reserves. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. It can be hard to face the world while the bankruptcy process is taking place. Do not isolate yourself or you will put yourself at risk for depression. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
When filing for personal bankruptcy you should always be aware of your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
People who fear bankruptcy are wise to do so, because it is never a pleasant experience. You might have been worried about it before, but this article can put those fears to rest. You can improve your life and safeguard your family by following the personal bankruptcy advice presented here.
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