Most people do not think they will ever need to consider filing for bankruptcy. Bankruptcy is usually a last resort and understanding the process is important. If you are approaching a bankruptcy situation, reviewing the advice presented below may help you understand what happens next.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If this happens to you, think about applying for a couple of secured credit cards. This will allow you to start building a good credit history while minimizing the bank’s risk. In time, you might be granted unsecured credit again.
Before filing for bankruptcy, hire a qualified attorney. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. An attorney specializing in personal bankruptcies can assist and make certain things are being handled correctly.
Before filing a bankruptcy claim, make sure that your home is well protected. Filing for bankruptcy doesn’t automatically involve losing your home. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Before filing for bankruptcy ensure that the need is there. Some people have great luck with handling debt with debt consolidation, which means taking out only one loan to pay off many loans. 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. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.
Chapter 13
Consider Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. Undergoing bankruptcy can be a difficult experience. It is long, full of stress and leaves individuals having feelings of shame and guilt. It can be hard to face the world while the bankruptcy process is taking place. But, keeping to yourself is likely to cause even greater sadness and despair. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
Do not file for bankruptcy if your income is greater than your bills. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. Chapter 7 usually can help payments be lowered. In order for this to be considered, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
Chapter 7 Bankruptcy
Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. A Chapter 7 bankruptcy will relieve you of your legal responsibility to pay any joint debts. However, the creditors could come after your co-signer and demand full payment for the debt.
Research the rules and regulations of personal bankruptcy before you file. There are some clauses within bankruptcy that could cause you upsets. If you do not know bankruptcy law, your bankruptcy case could be dismissed. Prior to filing any papers, learn about your rights and responsibilities when filing for personal bankruptcy. Doing so will make the process a lot easier.
Consider any other options available before filing for personal bankruptcy. You might want to look into the possibility of credit counseling instead. You can easily find non-profits that can assist you in your debt struggles. Their job is to lower your payments and interest through negotiations with your creditors. You will pay them, and in turn, they will pay the people you owe money to.
Once you go bankrupt, you will need solid advice on what action to take. Not entering the situation blindly will help simplify the process. This article has given a lot of information, so you can feel less stressed about the situation.
