Nowadays, many people have racked up huge amounts of debt. They are harassed by collection calls and creditors all while the bills keep piling up. If this situation sounds familiar, you may decide to consider filing personal bankruptcy. Continue reading to learn more about whether you need to file for bankruptcy or not.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. You have other choices, including consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Don’t give up. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Speak with your attorney about filing the correct petition to get your property back.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. Make your decision after all of your questions have been answered. Take your time choosing the right attorney to assist in your bankruptcy. Consulting with several attorneys will also help you find someone you trust.
Chapter 7
Know the differences between Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 most of your outstanding accounts will essentially be erased. All the things that tie you to creditors will go away. 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. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Do some research about these options so you can choose the best one. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. You can often lower your payment using Chapter 7 bankruptcy. For instance, you can get lower payments on you car if you purchased it before filing and took a loan with high interests on it.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. There are extra hoops to jump through. You need to contact your trustee so you can get approved for a new loan. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. Also, you need to be ready to say why you’re going to need the item.
Banish the word “shame” from your vocabulary before you file for bankruptcy. Bankruptcy can sometimes leave people feeling guilty, ashamed and alone. But, there is nothing positive about feeling this way and it can actually affect your mental state. A good way to deal with bankruptcy is to make sure that you keep a stiff upper lip.
Facing bankruptcy is not a fun situation and cause a lot of stress and anxiety. One way to help reduce is this stress is to hire a reliable attorney. Don’t think that the highest priced attorney is the best. What you need is a thoroughly competent lawyer, and this does not imply that you have to pay through the nose. Talk to friends who have been through a similar situation and ask them for referrals. You could also sneak into court to watch a real live bankruptcy proceeding to see how that attorney handles the situation.
As you can see, there is a lot of help available if you are considering filing for personal bankruptcy. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.
