Some people think bankruptcy is an option for “losers”; those are usually the first people that think differently when bankruptcy affects them. If you lose your job, your spouse or find yourself overwhelmed with bills, filing for bankruptcy might be the only option left. If you are in this situation, the advice listed here can help you.
Lots of people have to claim bankruptcy when their bills are larger than their income. If you find yourself going through this, you should know all about the laws that are in your state. Every state has a separate law having to do with bankruptcy. Your house is safe in certain states; however, in other states, it isn’t. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Debt advisors are one of the many other avenues you can consider. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.
Never lie about anything in your bankruptcy petition. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
You might experience trouble with getting unsecured credit after filing for bankruptcy. If so, apply for a secured credit card. That will show lenders that you are committed to rebuilding your credit. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
Do not give up. There may still be way to get repossessed items back after you file for bankruptcy. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Speak with a lawyer that will provide you with guidance for the entire thing.
Personal Bankruptcy
Be certain that bankruptcy truly is your best option. You may well be able to regain control over your debts by consolidating them. There is not easy process associated with personal bankruptcy. It will affect your access to credit in the future. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Consider filing a Chapter 13 bankruptcy. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember that missing a payment to the plan will result in your case being dismissed.
Avoid filing for bankruptcy if you make more money than your monthly bills. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Consider all options before filing for bankruptcy. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. If you are about to lose your house, talk to your lender about a loan modification. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Chapter 7
Remember that your Chapter 7 filing may affect other people in your life as well. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. Your creditors can then come after your co-debtor for full repayment of the debt.
Before filing for bankruptcy, you must be educated on the specifics of all bankruptcy laws. Did you know that in some areas, you cannot transfer assets from yourself to another person in the year previous to filing occurring? Also, you must never incur significant new obligations must prior to filing for bankruptcy.
Personal Property
You do not lose everything that you own when you decide to declare bankruptcy. You will be able to keep personal property. This may be things like jewelry, clothing, furniture and electronics. The laws of your state and the kind of bankruptcy for which you are filing, coupled with your financial situation, will determine what personal property you are allowed to retain. Additionally, the retention of large assets, such as your automobile and your home, is determined by these considerations.
A good tip when it comes to personal bankruptcy is to reconsider having a divorce, if you are finding yourself constantly in a hard financial situation. A lot of individuals get a divorce and file for bankruptcy immediately because they did not plan for the troubles that they will be experiencing financially. Rethink getting divorced, if possible.
No matter how bad things are when you are filing for bankruptcy, be honest. It’s a big mistake to lie about your financial situation or your assets. Also, it is against the law. You could even spend time in prison for lying about this information.
After considering all of your options, you may find that bankruptcy is your only choice. No matter how you arrived at this place, there is help available to reduce the stress you are under. You can find valuable information by reading this article.
This is a limited-time offer. We are not able to guarantee availability if you wait!
