Do you face significant financial burdens and think that bankruptcy is the best way to go? You’re in good company. Many people have been in the same situation as you. What you are going to read in this article, will give you suggestions that can ease the difficulties associated with bankruptcy.
Bankruptcy Laws
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. If this sounds familiar, you should read up on the bankruptcy laws in your state. Bankruptcy laws vary from state to state. Some states protect your home, and others do not. Know what the laws are in your state before filing.
Be sure to enlist the help of a lawyer if you’re going to be filing for bankruptcy. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Be sure you know how Chapter 7 and Chapter 13 differ. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. All creditor relationships will be severed. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Before filing a bankruptcy claim, make sure that your home is well protected. Bankruptcy filings do not necessarily mean that you have to lose your house. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Chapter 13 Bankruptcy
Research Chapter 13 bankruptcy, and see if it might be right for you. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
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. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.
Bankruptcy is a hard thing to experience and it could create both emotional and mental stress. Be certain that you hire a competent lawyer to minimize the stress and anxiety you are under. Don’t think that the highest priced attorney is the best. The cheapest attorney may not be the best, but the most expensive may not be the best either. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. If you wish, you can attend a bankruptcy hearing and witness your attorney in action.
As you can probably see, you are not alone in needing to file for bankruptcy protection. Unlike the uninformed masses, however, you took the time to read this article, so you are more informed. Use the information here to help see you through a smooth bankruptcy.
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