There are many valid reasons for filing bankruptcy. Certain life events can make personal bankruptcy the only viable option available. Whatever your reasons for filing bankruptcy, the article below can help.
Learn as much as you can about bankruptcy by going to informational websites. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. Personal bankruptcy attorneys can help make sure everything is done properly.
Your most important concern is to protect your home. Filing for bankruptcy does not guarantee that you will lose your house. 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. Check to see if you pass the requirements necessary to file for a homestead exemption.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Be sure you go on the Internet and do your research to see what’s best for you. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Before filing bankruptcy consider every available avenue. Sometimes consolidating your existing debts can make them more manageable. The whole process of filing for bankruptcy can be a long, and hard one. Credit will be much harder for you to come by after you file for bankruptcy. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. This is harder. Your trustee must approve any new loans. You will need to make a budget and prove that you will be able to afford your new loan payments. They may also want to know why you believe you need the loan.
Research your state’s bankruptcy laws before filing your petition. There are many pitfalls when it comes to the code pertaining to personal bankruptcy that can lead to a lot of unwanted issues. A variety of mistakes will lead to dismissal of your case. This is exactly why it’s imperative that you take the time necessary in order to research what you can about bankruptcy. Doing so will make the process a lot easier.
After filing bankruptcy, many people refuse to use credit cards or get loans. This is actually a poor idea because credit helps to build good credit. Avoiding credit altogether prevents you from rebuilding your credit standing, and will therefore serve as an obstacle when you wish to finance a house or a vehicle. You can start building up a more responsible credit history by opening one credit card account.
When you have creditors hassling you about a delinquent account while you are in the midst of bankruptcy, you may be able to refer them to a phone service offered by your bankruptcy lawyer. By giving them the information, they can inform creditors that your debt will be covered by bankruptcy. Then, you won’t have to worry about any further harassing phone calls.
Chapter 7
If after filing for Chapter 7 you aren’t qualified for Homestead Exemption, there is a possibility you can file Chapter 13. In some cases, it may be best to convert your entire Chapter 7 case into a Chapter 13 case, so you should talk to your attorney about your next step.
Go through your debts and make sure they’ll be able to clear when you file for bankruptcy so that you don’t have to file for anything you don’t have to. There are some types of debt (e.g., student loans, child support) that are not dischargeable in bankruptcy. These types of debts need to be taken care of through alternate means, such as credit counseling or debt consolidation.
If you have attempted every single option for dealing with your finances and you still come up dry, then you may have to file for bankruptcy. If circumstances beyond your control have brought you to this place, you do not have to be stressed out. This article contains many useful tips you need to know about before you make your decision.
This is a limited-time offer. We are not able to guarantee availability if you wait!
