Filing for bankruptcy is a huge decision in anyone’s life. Before you go through with it, you need to understand the gravity of the situation. It is vital that you know everything that can happen when you file for bankruptcy. Apply the advice from this article to go down the right path. Whatever difficult choices you must make, it can be made easier with research.
Retirement Accounts
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. Avoid touching your retirement accounts whenever possible. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Check the accuracy of all information before it is filed. It is wrong to assume that your lawyer will remember every word you ever utter! Speak up if something is troubling you, as this is your future we are talking about here.
Do not give up. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Speak with a lawyer that will provide you with guidance for the entire thing.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Do not make any final decisions until every question you have has been answered. You can think about your decision before making a commitment. This allows you time to speak with numerous lawyers.
Be aware of recent changes, if any, in the bankruptcy code. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To find out about these changes, you can look at your state’s legislation website or contact their office.
Protect your house. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Bankruptcy Filing
When your income surpasses your bills, you should not be filing bankruptcy. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. If you are about to lose your house, talk to your lender about a loan modification. Some lenders will make concessions rather than losing the money owed to bankruptcy. These concessions include waiving late fees, lowering interest rates, and changing the loan term. When all is said and done, the creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.
Find ways to relax while you go through the process of filing for bankruptcy. Filing is the most intensive step in the process, so afterwards it’s important to let go of some of your stress. Make sure you take care of your part and let your attorney do the rest. Life will surely get better after you finish this process.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. There are qualifications, such as the loan being high interest and a good work record for this option.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. However, it won’t be as easy as it may have been to get one prior to the bankruptcy. You will have to see your trustee and the approval for this new loan. Draw a budget up and show how you can pay the newer loan payment. You will always have to let them know why this item needs to be purchased.
There are quite a few ways to file for bankruptcy. Do not let this information overwhelm you! Take some time to figure things out. Take your time and think carefully about your decision before taking action.
