Just thinking about bankruptcy can make people fearful. Between rising debt and pressure from the family, it can leave you sleepless at night. The following advice will greatly help you if bankruptcy is a fear of yours.
It is important to understand your rights when filing bankruptcy. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Your most important concern is to protect your home. Filing for bankruptcy doesn’t automatically involve 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. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Repayment Plans
Look at all of your options prior to deciding to file for bankruptcy. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. A plan that can be useful when foreclosure is looming is a loan modification. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.
If you’re concerned about the details of keeping your car, try to ask your attorney about details regarding lowering your monthly payments. Chapter seven bankruptcy often provides for the lowering of payments. In order for this to be considered, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. But, creditors will ask for the money from your co-debtor.
During a Chapter 13 bankruptcy, you may still be able to get a mortgage or car loan. However, it will be a longer and more arduous task. You have to meet with your trustee to get approval for the new loan. It is important to make a budget and prove that you are able to afford the payment. It will also be necessary to show why a new purchase needs to be made.
Timing is everything. Timing is important, and that is especially true when filing for bankruptcy. While there are times that it is ideal to file soon, there are other times in which you should wait. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Don’t let shame consume you during the bankruptcy process. Going through bankruptcy can cause you to lose a lot of self-esteem. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. Staying positive and upbeat is the proper way to deal with bankruptcy.
Filing for bankruptcy is hard on anyone, and can cause extreme amounts of stress. To avoid getting too stressed, make sure you hire a reputable bankruptcy attorney. Don’t skimp when hiring a good lawyer. It is not necessary to engage the lawyer who charges the highest fees; all you need is a lawyer of high quality. Ask your friends, relations and acquaintances who have shared your experience to give you referrals to good lawyers. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
Anyone fearing bankruptcy has a legitimate fear; filing a claim can be scary. Though the fear may be great, you can alleviate some of that with this article. Use the bankruptcy information in this article to make your financial life yours again.
