Filing for personal bankruptcy is an important step, which should be thought through carefully. Check out the advice given in this article so that you can have an idea of what you can expect before you make such an important decision. It’s important to prepare yourself by learning ahead of time.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. There are other options available, such as credit counseling for consumers. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Do some research about laws and legislation before filing. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Do what you can to keep your home. Filing for bankruptcy does not always mean you will end up losing your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Learn the benefits and drawbacks of each type before deciding which is right for you. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Chapter 13
Consider filing using chapter 13 bankruptcy. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
After you have filed for bankruptcy, enjoy your life. The process of filing for bankruptcy can make people a nervous wreck. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Life is going to get better once you get through this.
See if your attorney can help you lower your payments if you want to keep your vehicle. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
Do not think of filing for personal bankruptcy as a shameful thing. This process is less that glamorous, and it makes most people lose their self-esteem. Do not let these negative feelings influence your decision. Having the right outlook during a tough financial upheaval is a great attitude in coping with bankruptcy.
It is important to be upfront with all your financial information when filing for bankruptcy. Leaving out information either purposely or by mistake can prolong your petition, or have it dismissed completely. You might think some asset or debt isn’t worth bothering with, but you should disclose it just to be on the safe side. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
Personal Bankruptcy
Learn about the personal bankruptcy rules before petitioning. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. Some mistakes in your papers can cause your case to be dismissed. Take the time to research personal bankruptcy before moving forward. This can save you a lot of time and make the entire process easier.
When you file for bankruptcy remember that you are not going to lose all your assets. You can keep personal property. This will include things like clothes, jewelry and electronics. This depends on the laws in your state, the bankruptcy type for which you file, and your unique finance situation, but it may be possible to retain your home, car and other large assets.
As is evident from the information you just read, the bankruptcy process takes time. Many issues need to be handled the right way. Keep this article’s advice in mind and you will probably stand a better chance of laying all the groundwork for your own bankruptcy properly.
