Personal bankruptcy can be overwhelming during the process, but a load off your shoulders once you get through it. Initially, you’ll have to look have to look at your finances, along with others as well. This may be very uncomfortable; however, after your bankruptcy case has been completed, you can start anew free from the hassles of bill collectors. Here are some great tips for making bankruptcy easier.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Don’t touch retirement accounts unless you don’t have a choice. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It is important to be aware of this list so you will know what assets are saved. Without reading the list, you may be shocked at which possessions can be taken from you.
If you’re going to file bankruptcy, you need an attorney. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
It is possible to keep your home. 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. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Chapter 13 Bankruptcy
Consider filing for Chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Being with the people who you love should be still be a top priority. Filing for bankruptcy is a difficult process. It is long, stressful and makes people feel like losers. It is not uncommon for a person to feel the need to pull away from loved ones during the process. But, keeping to yourself is likely to cause even greater sadness and despair. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
Don’t automatically assume that bankruptcy is your only option. There are many other options including debt consolidation and making payment plans with your creditors. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. Many times creditors are happy to work with you to ensure that you will repay your loan.
Going through bankruptcy is tough and can be mentally and emotionally draining. You need to do your research to find a good bankruptcy lawyer. Don’t let cost be the sole factor in who you hire. Your lawyer does not necessarily have to be the most expensive one; however, you should be certain of his or her qualifications and abilities. Get referrals from people you know who have been in your situation, check with the better business bureau and use free consultations to interview several people. You can attend court hearings if you want to see a prospective attorney in action.
When it comes to filing for personal bankruptcy, there are good things and bad things. Never forget that being well-informed is always the key to a successful bankruptcy, no matter what your reasons for filing are. After reading the tips we present here, you will be able to manage your bankruptcy filing with ease. Use these tips during the process and feel a little better about it.
This is a limited-time offer. We are not able to guarantee availability if you wait!
