Although unhappy circumstances in your life might have led you to file for bankruptcy, your life post-bankruptcy can be much better. The point of bankruptcy is to have a clean slate and a fresh start. Keep reading for ways to experience bankruptcy as a positive thing.
Many people need to file for bankruptcy when they owe more money than they can pay off. If this describes your situation, it makes sense to become familiar with relevant laws. Each state has their own bankruptcy laws. For instance, some states protect you from losing your home in a bankruptcy, but others do not. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
If you can, get a word-of-mouth referral for a lawyer. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Whoever provides your legal consultation must be privy to all of your financial information. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Learn all the latest laws before you file bankruptcy. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To know what these changes are, go to your state’s website or contact the legislative offices.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Comparing different lawyers makes it possible to find one with whom you work well.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Chapter 13
Consider Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. 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.
Remember that filing for Chapter 7 personal bankruptcy will not just affect you. Think about the effect it will have on business associates, friends and family or anyone else who may be a co-signer with you. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. However, the creditors could come after your co-signer and demand full payment for the debt.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. It is more difficult. Your trustee must approve any new loans such as this. Present a planned budget that shows how you can take on the loan payment and stay current. You will always have to let them know why this item needs to be purchased.
Debt Collectors
Before filing for bankruptcy, learn your rights. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. There are few debts that can’t be discharged. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Act at the right time. Timing can be critical when it comes to personal bankruptcy cases. In some situations it is best to file as soon as possible, but in other situations it is best to wait until after you’ve gotten through the worst of it. Consult with an attorney who specializes in bankruptcy so you know when it is a good time to file.
Learn from the mistakes you made that sent you to bankruptcy court. But, that does not mean that your post-bankruptcy life cannot be fantastic. In fact, if you apply the ideas and advice given in this article, you can truly make bankruptcy a turning point in your life towards better days.
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