Learning more about the process of bankruptcy is, sadly, something that a lot more people have to do today. The recent downturn in the economy has only exacerbated the situation. Before deciding to seek bankruptcy, you need to know the right information and what to expect; that way, you will make better decisions. If you read this article, you will learn what you need to know.
Don’t fear reminding your attorney of any specific details of your case. Don’t just assume that the attorney will remember it automatically. Speak up, because it is your future on the line.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Talk to the lawyer and not his assistant, who may not be legally able to help you. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Safeguard your most valuable asset–your home. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. Depending on certain conditions, you may very well end up being able to keep your home. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Chapter 13
Consider filing using chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. 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. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is 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.
Don’t automatically assume that bankruptcy is your only option. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. If you are facing foreclosure, consider a loan modification plan. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. It is more difficult. You need to speak with your trustee so that you can be approved for a new loan. Create a budget and prove that you will be able to afford it. You also have to prepare yourself to explain the reasons you need to buy the item.
Financial Information
When filing for bankruptcy, list all of your financial information. If you don’t do this, your file could be delayed or dismissed. All financial information needs to be considered by the court. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Make sure you know what you should be doing when you file for bankruptcy. There are several pitfalls with personal bankruptcy that can make your case harder to handle. A variety of mistakes will lead to dismissal of your case. This is exactly why it’s imperative that you take the time necessary in order to research what you can about bankruptcy. This will make things a lot more simple in the long term.
Be mindful of paying off outstanding obligations before you file a bankruptcy petition. Bankruptcy rules generally outlaw repayment of creditors in the 90 days leading up to a bankruptcy filing, a period that is extended to one year when it comes to payments made to family members. Before making any final decision concerning your finances, you should be educated on the rules of bankruptcy.
The first step to making your bankruptcy successful is to turn over a new leaf and decide to manage money better. Do not take on more debt or use more of your current credit. Bankruptcy judges and creditors may examine current and past behavior as they work to resolve your case. Every little bit of good financial behavior helps, so you should behave as responsibly as possible prior to filing.
As you read at the start of this article, bankruptcy has become a very common process now due to the economy. Use the tips you just read to make good decisions and remain in control of your financial situation.
