Having too much debt can be a frightening experience. In a quick amount of time, you can go from being in a tiny bit of debt to a situation that suddenly spirals out of control. When you find yourself in such a position, it can be hard to know what to do. In some situations, filing for bankruptcy might be the best option.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If this is happening to you, then learn about the laws where you live. Different states use different laws when it comes to bankruptcy. You may find your home is safeguarded in one state, while in another it isn’t. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. Other available options include consumer credit counseling. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.
Check the accuracy of all information before it is filed. You cannot expect your lawyer to remember every important detail without some reminder from you. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Every one of your debts will be gone if you decide to go with Chapter 7. Your former ties with creditors will cease to exist. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Before filing a bankruptcy claim, make sure that your home is well protected. There are many options available to help protect you from losing your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. Chapter 7 usually can help payments be lowered. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.
If you are going to file for bankruptcy make sure you are prompt. The judge reviewing your petition will consider your recent behavior, purchases, income and payments when making a decision. Debts can multiply very quickly, and can result in you losing money to wage garnishment, or even losing assets that are part of a secured loan. When you find that you cannot take care of your debts anymore speak with an attorney for bankruptcy to talk things over.
You do not have to lose everything you own when filing for bankruptcy. Personal property can be kept. Items like clothes, electronics, household furnishings, and jewelry are included in that category. The personal items that you are allowed to keep will depend on your home state’s individual bankruptcy laws, your personal financial situation and the specific bankruptcy that you are filing for.
You do not need to halt your plans to file simply because you have changed jobs. Even with some extra cash, bankruptcy could still be your best bet. When you file for bankruptcy tends to make a huge difference. If your case is filed before you begin your new job, any repayment you must do will be calculated without the extra income.
When it comes to filing for bankruptcy, never lie, no matter what your financial situation is like. Lying about debts and assets is a huge mistake. This not only unethical, it is simply illegal. If you fail to declare certain assets or debts, you may be held criminally liable for the omission if it was found to be intentional.
Sometimes life just happens and you feel like there is little that you could do about it. The article you just read offered some helpful tips which you can use to get your financial situation in order when dealing with bankruptcy. Integrate the tips here into your financial plans and work to make a positive change in your situation.
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