Have your finances become unmanageable? Do you feel that the only thing you can do is file for personal bankruptcy? You are not the only one. There are thousands of people who file for bankruptcy every day. The piece that follows includes useful ideas for ensuring that the bankruptcy process goes as smoothly as possible.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have other choices, including consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
If bankruptcy is an option for you, secure the services of an attorney. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. Those with smaller debts may find use in a program for consumer credit counseling. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Safeguard your home. Filing for bankruptcy doesn’t automatically involve losing your home. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Chapter 13 bankruptcy might be a good option, so don’t overlook it. 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. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.
Take some time after filing for bankruptcy to enjoy life. It’s easy to be stressed during this time. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Things will be sunnier after you take positive steps to move forward.
If your vehicle is in question, perhaps your attorney can assist in lowering your payments. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. The vehicle must have been obtained more than 90 days before filing and be a loan with high interest. You must also have consistent work history.
Chapter 7
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. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. However, your creditors will be able demand that your co-debtor pays the debt off in full.
Rest assured, when you file for Chapter 13 bankruptcy, you still have the ability to take out mortgage and car loans. It is just tougher. You will need to secure the trustee’s approval for any new debt obligation. Present a planned budget that shows how you can take on the loan payment and stay current. An explanation of need will also be necessary.
When filing for personal bankruptcy you should always be aware of your rights. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
In conclusion, you aren’t alone when it comes to filing for bankruptcy. However, you can be better armed by using the tips you have found here. The tips in this article should give you a good head start on your bankruptcy filing.
