Frustration, sadness, anguish and anger are feelings that are felt by anyone who experiences personal bankruptcy. They may feel trapped in their debt, wondering how to survive the next day. You will find there is help, and it is called bankruptcy.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. When it comes to bankruptcy, states have varying laws. For instance, some states protect you from losing your home in a bankruptcy, but others do not. You should be familiar with the laws for your state before filing for bankruptcy.
If you can, get a word-of-mouth referral for a lawyer. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
If bankruptcy is an option for you, secure the services of an attorney. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. Personal bankruptcy attorneys can help make sure everything is done properly.
Be aware of recent changes, if any, in the bankruptcy code. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To know what these changes are, go to your state’s website or contact the legislative offices.
Check into less drastic solutions prior to declaring bankruptcy. For example, consumer credit counseling programs can help if your debt isn’t too large. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Be sure your home is well protected. Filing for bankruptcy does not mean you have to lose your home. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Investigate other alternatives before resorting to bankruptcy. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. Your creditors will be willing to work with you to allow you to pay off your debts. They may be able to take late fees off of your account, cut down your interest, or even extend the loan’s repayment period. Many times creditors are happy to work with you to ensure that you will repay your loan.
Personal Bankruptcy
After reading this article, you should be able to see that personal bankruptcy isn’t so bad. Though it is very difficult, personal bankruptcy is not the end. Follow the advice in this article for help in controlling your debt and deciding if bankruptcy is right for you.
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