These days, the word “bankruptcy” is about as common as the word “the.” You can thank the dismal economy for that. Before you begin to file bankruptcy, it’s imperative that you know how it works so you can make wise decisions. This article will help you to make the best choices.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Bankruptcy laws vary from state to state so it is important to do your research. For instance, in some states you can keep your home and car, while other states prohibit this. You should be familiar with the laws for your state before filing for bankruptcy.
Before you file for bankruptcy, carefully consider if it is the right option for you. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Always remind your lawyer of specifics that are important to your case. Just because you have told him something of importance that he will remember it. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. In this event, you should attempt to apply for a secured card or two. This demonstrates to creditors that you are making a good faith effort to repair your credit. It will take time, but when creditors see a pattern that satisfies their need to see your good faith with payments, you will then be able to apply for unsecured cards.
Before filling for bankruptcy, determine which assets will be exempted from seizure. 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 do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Brush up on the latest bankruptcy regulations before you decide whether or not to file. These laws change regularly and you should stay up-to-date so you can make the best decisions. To find out about these changes, you can look at your state’s legislation website or contact their office.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Protect your house. It isn’t inevitable that you will lose your house when you file for bankruptcy. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Check to see if you pass the requirements necessary to file for a homestead exemption.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Consider filing for Chapter 13 bankruptcy. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. However, if you were to miss a payment, the court would dismiss your case right away.
As this article stated, the subject of bankruptcy is on many people’s minds nowadays, due to the economy. In order to ensure the best decisions are made, use the tips in this article.
This is a limited-time offer. We are not able to guarantee availability if you wait!
