Living with bankruptcy can be very difficult. It can seem like your financial options are limited. Nonetheless, it is possible for you to continue getting the things you need (e.g. a home loan or an automobile loan) even if you have a very low credit score.
Bankruptcy Laws
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If this sounds familiar, you should read up on the bankruptcy laws in your state. Bankruptcy laws vary from state to state so it is important to do your research. Your home and other major assets may be protected in your state, while they are vulnerable in other states. Know what the laws are in your state before filing.
Check the accuracy of all information before it is filed. Don’t assume that he’ll remember something from a month ago; tell him again. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Research what assets are exempt from seizure before you decide to declare bankruptcy. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Your attorney and trustee should be privy to all information about your finances. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Do some research about these options so you can choose the best one. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Chapter 13
Consider filing for Chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Bankruptcy can be a good time to spend time with people you love. Undergoing bankruptcy can be a difficult experience. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. Lots of people think they need to hide from everyone until this is all done. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.
If you decide to file for bankruptcy, it’s important that you’re educated about your rights. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. Should you face a creditor like this, and you are informed that the debt is not valid under the bankruptcy. These types of infractions should be reported.
Make sure that you disclose every bit of financial information on your bankruptcy petition. If you forget any items, your filing could be rejected. No sum is too small to be included; err on the side of caution and include everything. This type of income could come from doing odd jobs, extra cars or outstanding loans.
No matter if you’ve filed for bankruptcy, this will not forever limit your life. When you show good faith and you’re repaying your debts, this effort will be noticed in a positive light by the creditors. Start now, and by the time you need a home loan or car, you may be able to get one.
