If you are facing the repossession of valuables, such as cars or jewelry, you may be feeling some fear. Put your finances in order and file for bankruptcy if this is your only option to get out of debt. This article provides some helpful tips to help you get through the process.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If you find yourself going through this, you should know all about the laws that are in your state. Each state has their own bankruptcy laws. Your home and other major assets may be protected in your state, while they are vulnerable in other states. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Ask yourself if filing for bankruptcy is truly your best option. You can find services like counseling for credit that consumers can use. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. 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.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. The lawyer who properly answers your questions is the one you should hire. Take your time choosing the right attorney to assist in your bankruptcy. After your consultations, do some additional research on each attorney you consider qualified for the job.
It is possible to keep your home. There are many options available to help protect you from losing your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Chapter 13 Bankruptcy
Consider filing for Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. This lasts for three to five years and after this, your unsecured debt will be discharged. Just know that missing one payment could cause your case to be dismissed.
Once the initial filing period is over, ensure that you are getting out and enjoying life. It is common for people to stress when filing. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. Life will get better after you finally get this situation over with.
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.
Make sure you are acting at the appropriate time. In bankruptcy filing, timing is quite important. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Because bankruptcy is such a challenging time that a great deal of stress, both mental and emotional, may be involved. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. While the person you select does not have to cost the most, they should be competent and reliable. Rely on word-of-mouth referrals from others who have filed for bankruptcy, check the BBB, and take advantage of free consultation offers. Try to get a referral from a trusted friend or family member.
Of course you could decide to file bankruptcy, but learn of your other choices first. You should also know that some debt consolidation firms are little more than scams that will only hurt your financial situation further. Keep these tips in mind to make the best choices for your financial future and to avoid worsening your debt.
