There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. They are harassed by collection agencies and creditors and cannot get their finances under control. Filing for bankruptcy might be the best option for you. Continue reading to learn more about whether you need to file for bankruptcy or not.
Bankruptcy Laws
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this sounds familiar, you should read up on the bankruptcy laws in your state. Each state has their own bankruptcy laws. Your home and other major assets may be protected in your state, while they are vulnerable in other states. Be sure to have some familiarity with the law in your jurisdiction.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. You have other options, including consumer credit counseling help. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Personal Bankruptcy
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. With all the ins and outs of bankruptcies, it can be hard to grasp all the knowledge. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Should you choose Chapter 7, your total debt load will be erased. Your former ties with creditors will cease to exist. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. Both options have advantages and drawbacks, so do your research before deciding.
Filing for bankruptcy is not recommended when you have income more than your debts. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.
Look at bankruptcy as a chance to mature and take responsibility for your personal finances. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. Although dealing with a bankruptcy is stressful, try to focus on the positive. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Bankruptcy is a challenging time and can create a huge amount of mental and emotional stress. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Make your hiring decision based on several criteria, not just on price. The most expensive attorneys are not necessarily the best ones. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
Make sure you know the bankruptcy laws before filing your petition. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. You might find that your case become dismissed because of a mistake. Before you go ahead, devote a little time to research and the topic of personal bankruptcy. The entire process will be much easier when you move forward with awareness.
As you’ve read here, there are many places to find help if you are thinking about personal bankruptcy. Tackling this in a logical and emotionless manner will relieve you of your debt issues while giving you a fresh start for the future.
