Coping with the realization that you have to file bankruptcy is not any easy thing to do. When you’re in a bind, financially, you may find that you have limited options. Your future lending requirements will not be permanently hindered by bankruptcy, read on to find out why.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Other available options include consumer credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Always be honest with the information you give about your finances. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Don’t avoid telling your lawyer specific details with your case. Don’t just assume that the attorney will remember it automatically. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Stay up to date with any new bankruptcy filing laws. Laws are subject to change, and it’s important that you’re educating yourself about current code only. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Chapter 7
Know the differences between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. All of your financial ties to the people you owe money to will disappear. 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. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Meet with a few attorneys who offer free consultations before hiring one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Looking for an attorney will help you find a lawyer you feel good around.
You can take steps to hang onto your house. Bankruptcy filings don’t necessarily have to end in the loss of your home. 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. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Be sure you go on the Internet and do your research to see what’s best for you. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Interest Rates
Investigate other alternatives before resorting to bankruptcy. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. A plan that can be useful when foreclosure is looming is a loan modification. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. After all is said and done, your creditors will still want their money. For this reason, you may wish to investigate debt repayment programs in lieu of bankruptcy programs.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. When filing Chapter 7, you are not legally responsible for the debts in your name. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. Of course, it’s difficult. You will be required to meet a trustee and be approved for a new loan. You need to show them why and how you can handle paying back the new loan. Also, you need to be ready to say why you’re going to need the item.
Before declaring bankruptcy, it is important to know your rights. It is not unusual for creditors to claim that their debt is not able to be discharged. Most states allow for the majority of debt to be included on a bankruptcy. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
You now must realize that filing bankruptcy with not limit your life forever. When saving money, you’re showing the lenders that you wish to rebuild your credibility. They’ll appreciate it. Save as much as you can and you will see the difference when you walk in for a new loan for a car or a home.
