Drowning in debt can be overwhelming. There are times that having a small financial problem turns into a huge one. Unfortunately, once you’re in this situation, fixing it can be hard. The following article will give you some pointers on what to do regarding bankruptcy if you are way over your head in debt.
When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. Retirement accounts should never be touched if it can be helped. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Inaccurate or incomplete information can lead to your petition being denied. Speak up. This is your life, and your future depends on it.
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 has lists of various asset types that are exempt during the process. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Do not give up. There may still be way to get repossessed items back after you file for bankruptcy. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. A qualified bankruptcy attorney can walk you through the petition process.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Only make your decision if all your questions and concerns are adequately addressed. You do not have to give them your decision right after the consultation. This allows you time to speak with numerous lawyers.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Do some research about these options so you can choose the best one. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Be sure you have no other choice but to seek bankruptcy. You may well be able to regain control over your debts by consolidating them. It is not a quick and easy process to file for bankruptcy. It will also harm your ability to secure credit in years to come. Needless to say, if some alternative strategy will allow you to take care of your debts, you should give it a try before resorting to bankruptcy.
While going through this process, spend more time with friends and family. Bankruptcy can really wear down your emotional reserves. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. It is not uncommon for a person to feel the need to pull away from loved ones during the process. Do not isolate yourself or you will put yourself at risk for depression. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
Repayment Plan
You should weigh every option before thinking about bankruptcy. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. If you are looking at foreclosure, think about a loan modification program. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. Filing under Chapter 7 is usually a good way to lower your payments. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
Sometimes life just happens and you feel like there is little that you could do about it. Now you can see a few different ways that you can gain control over your finances if faced with personal bankruptcy. It is time to take action and fix your problems.
