Although bankruptcy causes stress, it can help financially. A lot of people will go over your finances and find out details about your personal life. However, once the bankruptcy gets discharged, you can begin to create a better financial situation while all those harassing bill collector phone calls stop. This article is filled with useful tips to help you get through bankruptcy.
It is important to remind your lawyer of any details that may be important to your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
You should never give up. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Consult with a lawyer who can advise you on what you need to do to file a petition.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most lawyers offer free consultations, so consult with a few before settling on one. Don’t hire an attorney who fails to address all your concerns and questions. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. Be sure to talk with a number of lawyers, and compare the information you receive.
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. Chapter 7, for example, will wipe away every one of your outstanding debts. All of your financial ties to the people you owe money to will disappear. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Safeguard your most valuable asset–your home. Filing for bankruptcy doesn’t automatically involve losing your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy might be a good option, so don’t overlook it. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. You can apply for a modification of your mortgage if your home is going into foreclosure. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. Many times creditors are happy to work with you to ensure that you will repay your loan.
A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn’t refrain from trying. However, it will be a longer and more arduous task. You will need to go through various hoops in order to be approved for any new loan type. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. You will always have to let them know why this item needs to be purchased.
There are benefits and detriments to filing bankruptcy. Regardless of your reason for filing, be aware information is the closest friend you have during the entire thing. These tips can make dealing with bankruptcy easier. Use the tips presented here to help the process goes smoothly and more comfortably.
