Anything leading you to going through bankruptcy is not a happy tale, but the life you live after might be. With a clean slate, it is possible to start over both financially and personally. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this is the case for you, you should begin to investigate the legislation in your state. The laws governing bankruptcy vary from state to state. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Be aware of bankruptcy laws before filing your claim.
Before undertaking the bankruptcy process, ensure you have made the correct decision. You can find services like counseling for credit that consumers can use. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
It should go without saying, but refrain from lying in your bankruptcy filings. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Consult with a lawyer who can advise you on what you need to do to file a petition.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Considering several different lawyers can help find someone to trust.
Chapter 13
Consider Chapter 13 bankruptcy for your filing. With a consistent income source and less than $250k in debt, try filing for Chapter 13. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. 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.
Don’t automatically assume that bankruptcy is your only option. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. If you are looking at foreclosure, think about a loan modification program. Some lenders will make concessions rather than losing the money owed to bankruptcy. These concessions include waiving late fees, lowering interest rates, and changing the loan term. Many times creditors are happy to work with you to ensure that you will repay your loan.
Pick the right time to file. When you time things right, it does you good, especially when you’re filing for personal bankruptcy. In certain situations, you should file right away, but other situations will warrant you waiting. Have a chat with a bankruptcy specialist to discover when the ultimate time would be for you to file.
Learn and understand the laws and rules regarding personal bankruptcy filings, before you decide to file. There are some clauses within bankruptcy that could cause you upsets. Mistakes can also have your case dismissed. Make sure you have a decent understanding of the bankruptcy process before you proceed. This will help your process go smoother.
Filing for bankruptcy doesn’t mean you will lose all your assets. When you file for bankruptcy, you are allowed to keep personal property. Things like jewelry, clothes, and electronics are included in this category. Depending on where you live and what you’re filing for, you might be able to keep you home and things like you car.
Be sure to take care in choosing a lawyer to handle your personal bankruptcy case. This area of law attracts some inexperienced amateurs. Often times, people choose lawyers that aren’t licensed properly or that don’t have enough experience. Don’t fall victim to this. The Internet can be helpful in investigating an attorney’s disciplinary record, client ratings, and background.
If your finances are tight and you are considering filing for personal bankruptcy, why not put your plans for getting a divorce on the back burner? When many people divorce, they have to pursue a bankruptcy when the realities of the costs comes to light. You should make every effort to attempt a fix.
If you are unable to get a homestead exemption when filing for Chapter 7, you might consider filing for Chapter 13 bankruptcy to cover your mortgage. For some people it is a good idea to convert your Chapter 7 case to a Chapter 13; talk to your lawyer about which action to take next.
If you are about to file for bankruptcy, you have probably been through tough times lately. However, once this chapter is written it is done and you can begin to start fresh. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.
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