Many people these days have fallen deep in to debt. They are harassed by collection agencies and creditors and cannot get their finances under control. If this description applies to you, you may wish to think about filing for personal bankruptcy. The bankruptcy laws vary in each state, so educate yourself on the laws in your state.
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 shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. 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. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Talk to your lawyer to find out how to go about properly filing a petition.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You do not need to make a decision immediately after the consult. You could even go to different lawyers for advice.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. 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. Considering several different lawyers can help find someone to trust.
Chapter 13 Bankruptcy
Research Chapter 13 bankruptcy, and see if it might be right for you. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. You can secure your home under Chapter 13 and pay your debts with a payment plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Chose the proper moment to make your move. Timing is everything, especially in personal bankruptcy filings. For some people, filing right away is best, however for others, waiting a while is best. Discuss your particular situation with your bankruptcy attorney to determine the best time to file.
Going through bankruptcy is tough and can be mentally and emotionally draining. You need to do your research to find a good bankruptcy lawyer. Make your hiring decision based on several criteria, not just on price. Your lawyer does not necessarily have to be the most expensive one; however, you should be certain of his or her qualifications and abilities. Speak to those around you at work or social settings, who have dealt with this. Make the most of the BBB and consultations with attorneys to increase your knowledge and decision-making ability. If you want to know more about a specific lawyer, attend a court proceeding and see how the attorney handles herself.
Make sure you know what you should be doing when you file for bankruptcy. Without knowing the exact rules, you could inadvertently run into serious issues that could ultimately lead to your bankruptcy failing. You might find that your case become dismissed because of a mistake. Prior to filing any papers, learn about your rights and responsibilities when filing for personal bankruptcy. That way, you will have an easier road.
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. 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 consulting a professional, you will be able to get the advice that you need before everything gets too complicated.
Credit History
Keep in mind though that personal bankruptcy might prove a wiser choice for your credit history than keeping making late payments. While bankruptcy will haunt your credit history for up to ten years, your damaged credit will start healing right away. The whole point of bankruptcy is to give you a second chance.
After reading this article, you now know that there are many options available and possibilities to consider when filing for 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.
