Anytime you are faced with the prospects of filing for bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. The whole point is to wipe the slate clean and have a new chance at life. Completing the bankruptcy process properly can lead to a new financial future.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If you’re in this situation, 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. Be sure to have some familiarity with the law in your jurisdiction.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States DoJ along with other private and nonprofit organizations all have insightful knowledge. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Do not use a credit card to manage your tax issues and then try to file bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. Rule of thumb is if the tax is dischargeable, then the debt will be dischargeable. So, in short, do not use your credit cards to pay off debts right before you file for bankruptcy.
Secured Card
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If you are in this situation, applying for a secured card may be the answer. This will allow you to start building a good credit history while minimizing the bank’s risk. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. It’s isn’t necessary to make a choice right away. This allows you time to speak with numerous lawyers.
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. All debt will be eliminated with Chapter 7. All happenings with creditors will disappear. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
It is possible to keep your home. Filing for bankruptcy does not always mean you will end up losing your home. There are mitigating factors, such as lose of value, or multiple mortgages. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Chapter 13
Consider Chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. However, there are steps which must be taken to ensure you are within the law of bankruptcy. Your bankruptcy custodian will need to approve the loan. 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.
Make sure you are acting at the appropriate time. When it comes to filing for personal bankruptcy, timing is everything. There are occasions where it pays to delay and others where a quick decision is the best option. Find out when the correct time is for you to file for bankruptcy from a bankruptcy legal professional.
Credit Counseling
Don’t file for personal bankruptcy until you’ve looked into your other options. Think about credit counseling, for example. You can get the help you need from a variety of non-profit credit counseling companies. They can work with the creditors to lower payments and interest. You will pay them, and in turn, they will pay the people you owe money to.
Judging from the information contained within the article alone, you can now see that there are ways to get out from under the piling debt. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. If you use these tips, you may be able to use bankruptcy to make your life better going forward.
This is a limited-time offer. We are not able to guarantee availability if you wait!
