Personal bankruptcy can be overwhelming during the process, but a load off your shoulders once you get through it. On the one hand, you have to go through all your finances and deal with many people going through your financial life. However, when your bankruptcy is over, you can re-establish your finances and no longer need to tolerate bill collectors. If you would like to make filing for personal bankruptcy much easier, simply follow the steps we present here.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If this applies to you, be sure that you know what the laws of your state are. Each state has its own set of rules regarding bankruptcy. For instance, in some states you can keep your home and car, while other states prohibit this. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. You can learn a lot on the U.S. Run a quick Internet search to find out all the different agencies you should be contacting or visiting via the web to find out what you can. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
Don’t be tempted to race toward a bankruptcy without taking time to make sure it is the right thing for you to do. Perhaps just consolidating some of your existing debt, could make them easier to manage. Filling for bankruptcy could be a long and stressful process. Your credit will be impacted for many years. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Look at all the alternatives to bankruptcy before filing. There are many other options including debt consolidation and making payment plans with your creditors. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. 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.
Don’t forget to enjoy your life once your finances get fixed. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. This stress may lead to something worse like depression, so do what you can to fight that from happening. Once the process if over, your life will improve.
If you are in the midst of a Chapter 13 bankruptcy, it is possible to apply for certain loans. It’s a bit more difficult, though. You need to contact your trustee so you can get approved for a new loan. You need to develop a budget and show that you will be able to afford the new payment. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Pick the right time to file. Timing can be critical when it comes to personal bankruptcy cases. While there are times that it is ideal to file soon, there are other times in which you should wait. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Do not put off filing for bankruptcy. It is quite common for people to linger on hoping that their financial difficulties will somehow resolve; however, this very rarely happens. It is easy you to lose control of your debt, and avoiding the problem will make things worse. The minute you realize that your debts are too big to take care of, contact a bankruptcy attorney to discuss your options.
Don’t take large cash advances from credit cards prior to filing since the debts will be eliminated from these cards. 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.
When it comes to filing for personal bankruptcy, there are good things and bad things. No matter why you have decided to file, remember that knowledge is power when it comes to managing the situation. The tips in this article can help you handle bankruptcy more easily. Use these tips smartly to make the best decision possible.
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