It can be very hard to live with a personal bankruptcy filing. It can seem like your financial options are limited. Although, this situation should not get you down because there are items you can still get like a home loan or car, continue on and learn how.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If this is your case, you should do some research about bankruptcy laws in your state. Different states have different laws regarding bankruptcy. For instance, your home might be protected in some states while you might lose it in others. Be sure you educate yourself on local laws prior to filing.
If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. You should always keep money saved for worse times. 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.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you aren’t aware of this, you could lose some assets that you value.
Personal Property
Keep working to improve your situation. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Get help from your lawyer to file a petition so you can get your items back.
Consider Chapter 13 bankruptcy for your filing. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Prior to filing for bankruptcy, purge from your vocabulary the word “shame”. This process is less that glamorous, and it makes most people lose their self-esteem. These feelings can cause you to make rash decisions and cause psychological problems. Keep your mindset positive while you work through financial troubles such as bankruptcy to reduce stress and have an easier time coping.
Bankruptcy laws are very exact and very important, so ensure that you’re well aware of all current laws before you file a petition. For example, it is forbidden for an individual to transfer any assets away from the name of the filer within the twelve months preceding filing. Also, a person cannot legally increase their debt amount on credit cards prior to filing.
Take a look at all of your financial options before filing for personal bankruptcy. You may want to consider credit counseling. Many different non-profit entities exist that can assist you without charging you any fees. They can work with those you owe money to in order to give you lower payments and lowered interest rates, too. All you have to do is give them your payments and they handle paying the creditors.
Do not take too long deciding that it is time to declare bankruptcy. Although it may be very difficult to admit that bankruptcy is the answer for you, it will be much harder to continue spiraling into a debt quagmire. By talking to a professional, as soon as possible, they can give you some advice on things you can do before it all gets too complicated.
It is important to know that you may bet better off filing for bankruptcy than continuing to be in debt. Although filing for bankruptcy stays on your financial record for 10 years, you can immediately begin to improve your credit. The main benefit to filing for bankruptcy is the chance at a new start.
Even if you go bankrupt, you do not need to be limited forever. Saving your money goes a long way to show your lenders concrete proof that you are serious about reestablishing your credit. Start saving to see just how much of an impact the change makes when people see you go for a home or car loan.
