Are you so far in debt that you may have to file for bankruptcy? If so, you have come to the right place. By simply searching online and doing a little research you can possibly avoid filing for bankruptcy. Make sure you thoroughly read the literature below in order to learn what you can about bankruptcy.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
Be sure you’re doing what’s right before you file for bankruptcy. It is possible to take advantage of other options, like consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
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 federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It is important to be aware of this list so you will know what assets are saved. If you aren’t aware of this, you could lose some assets that you value.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. With very few exceptions, the connections between you and your creditors will be severed. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Safeguard your home. You don’t have to lose your home just because you are filing for bankruptcy. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
If your income exceeds your obligations, you should not seek bankruptcy protection. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. Any co-debtor may well be held responsible for paying off the total remaining amount of the debt, though.
Rest assured, when you file for Chapter 13 bankruptcy, you still have the ability to take out mortgage and car loans. It’s a bit more difficult, though. You will have to see your trustee and the approval for this new loan. Draw a budget up and show how you can pay the newer loan payment. They may also want to know why you believe you need the loan.
If you’re willing to learn and exercise patience and understanding in the process, filing bankruptcy doesn’t have to be a difficult process. It’s a good thing if you are able to buy a little time for yourself. Doing so can help you avoid bankruptcy. Once you have resolved your debt problems, you will be ready to start moving forward.
