Are you in a financial jam and you feel like bankruptcy is the only option for you? There is no need to be stressed out. Plenty of people have gone through this and rebuilt their lives. Countless individuals have determined that bankruptcy is the best way to alleviate their personal financial burdens. This article can help you make sure the process starts properly.
Millions of Americans file for bankruptcy each year because they can not pay their bills. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. Some states may protect you home, and some may not. It is important to be cognizant of the laws in your state before filing for bankruptcy.
If bankruptcy is an option for you, secure the services of an attorney. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. Personal bankruptcy attorneys can help make sure everything is done properly.
Learn of new laws prior to deciding to file for bankruptcy. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. To learn how the law has changed recently, go online and check your state’s website, or call the state government and ask them.
Check into less drastic solutions prior to declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Chapter 7
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. All of your financial ties to the people you owe money to will disappear. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. Both options have advantages and drawbacks, so do your research before deciding.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Interviewing multiple attorneys is a good way to find the best fit.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. Filing for personal bankruptcy can be very stressful for the debtor. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. You are getting a fresh start, and things will get better.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. However, if you had a co-debtor, they will be required to pay the debt.
It is possible to get an auto loan or mortgage during the repayment period for Chapter 13 bankruptcy. However, there are steps which must be taken to ensure you are within the law of bankruptcy. First, your trustee will have to approve the loan. Draw up a budget, demonstrating that you can afford the new loan payment. You will also need to explain why it is necessary for you to take out the loan.
As was stated earlier, the bankruptcy journey is one shared by many others. Having read this article, you should feel better prepared to navigate this process. Make an effort to use the information shared here with you to simplify the bankruptcy process for yourself.
