Just thinking about bankruptcy can make people fearful. A good number of families are having trouble containing their debt and managing their expenses. If you’re afraid of this scenario (or worse if you are living at), it is our sincere hope that the advice given here will be of help to you.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. Do not tap retirement accounts unless there is no other alternative. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.
Keep with what you have decided to do. You might even be able to get back secured property that has been repossessed in the 90 days before filing. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
Bankruptcy Laws
Learn the newest bankruptcy laws before filing. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Comparing different lawyers makes it possible to find one with whom you work well.
Investigate your other alternatives before you decide you have to go with bankruptcy. Consolidating current debt could make it easier to manage. Bankruptcy cases are long, anxiety-filled experiences. It will have a long-lasting effect of your future credit opportunities. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
If you have fears that you will lose your car, ask your lawyer about the possibility of lowering your car payments. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. If you meet the criteria specific to your state, it may be a good option to consider.
Learn and understand the laws and rules regarding personal bankruptcy filings, before you decide to file. You need to be aware of any issues you will encounter with the bankruptcy code. Small errors could even cause your case to be dismissed. Make sure you check into your case and see that you have the paperwork filled out correctly. This will ensure your bankruptcy will go smoothly.
Credit Counseling
Think about other options before you file for bankruptcy. For example, you may want to think about credit counseling. There are some good non-profit organizations that could help you. They can help you to lower both your debts and interest owed to creditors. The payments you make go to the credit counseling company, and they send that money to your creditors.
Make wise decisions when choosing a lawyer. This kind of law is popular among inexperienced lawyers. Make sure that the lawyer you decide to hire has years of expertise and is properly licensed. Information on lawyers and their ratings by clients can be found on the Internet.
A couple months after your bankruptcy is complete, acquire copies of your credit reports from each of the three credit reporting agencies. It is important to make sure the report reflects your debts as satisfied and that any accounts you closed are noted. Question and clear up problems and discrepancies immediately, so that your credit record can start improving quickly.
Include all of your debts that you wish to be erased on the bankruptcy filing papers. If you forget to include any of your debts in the filing, you lose the chance to discharge them. It is up to you to ensure all things that need to be taken care of are written down, otherwise you will be stuck paying on things that weren’t discharged.
Some attorneys may offer to contact creditors in regard to any delinquent accounts in your name. Give your creditors your lawyer’s number and they will get a confirmation that you do not owe them anything. If everything checks out, the call center should then update their records to show that you no longer owe any money to that company.
Chapter 7
If you cannot use the Homestead Exemption within the Chapter 7 bankruptcy laws, find out if you can file a Chapter 13 bankruptcy with your mortgage. There are some times when your best option will be to change your case from a Chapter 7 filing to a Chapter 13 filing. Consult your attorney to see if this option is right for you.
Those who are afraid of bankruptcy are entirely justified; it often can be a frightening experience. However, bankruptcy is not the end of the world, and this article is here to help you understand how not to be overwhelmed by it. Take the info shared here and apply it to your situation where needed so that you can move forward to a brighter future again.
