There is hope for a better life after bankruptcy, no matter the unpleasantness that went before. Wiping the slate clean means having a new lease on life. The following article will give you advice to help make process of filing go smoothly.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. For example, the personal home is exempt from being touched in some states, but not in others. Make sure you know the laws where you live before you file.
Do not despair, as it’s not the end of the world. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Get help from your lawyer to file a petition so you can get your items back.
Remember to only file for bankruptcy if you need to. Consolidation could be the avenue you need to get your finances back in order. The bankruptcy process takes forever to finish and is very nerve-wracking. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. Because of this, you should be sure that bankruptcy is your only option before you file.
Chapter 13
Look into filing Chapter 13 bankruptcy. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember that missing a payment to the plan will result in your case being dismissed.
Do not let bankruptcy consume you, make sure you make time for your friends and family. Filing for bankruptcy, and all that comes with it, can be hard to handle at times. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. A lot of folks decide to hide themselves from the world around them until the end of the process. But, isolating yourself from others could bring out more depression. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
Avoid filing for bankruptcy if you make more money than your monthly 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.
Financial Information
Create a list of all of your finances before filing for bankruptcy. Forgetting anything can cause a delay, or even a dismissal. Even if you believe that certain financial information is inconsequential, do not avoid including it in your documentation. Financial information should include all income, assets and loans.
Consider other options prior to filing for personal bankruptcy. Credit counseling is one option you should consider. There are various non-profit companies that may be able to help you. These companies lower your interest and payments by working with your creditors. The payments you make go to the credit counseling company, and they send that money to your creditors.
As previously stated, the reasons for filing for bankruptcy are not generally a happy fairy tale. Life after bankruptcy can be normal and happy. Actually, your life can become much better by following the advice presented here and moving forward past bankruptcy.
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