Sadly, bankruptcy is an increasingly widespread phenomenon of late. There are many who recognize the role the economy has played in this epidemic. You need to approach bankruptcy with a little knowledge so that you can simplify the process. The below article will provide you with this wisdom.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If you’re in this situation, learn about the laws where you live. Each state has its own set of rules regarding bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. You should be aware of local bankruptcy laws before filing.
Learn as much as you can about bankruptcy by going to informational websites. The United States DOJ, the NACBA, and the ABI all have useful information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Do not abandon hope. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Consult with a lawyer who can help you along with filing the petition.
It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Learn the newest bankruptcy laws before filing. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process. To stay up-to-date on these laws, check out your state’s government website.
Consider other alternatives before filing for bankruptcy. For example, you want to look into credit counseling. This is the best option for small debts. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Chapter 7
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. The ties with the creditor will be broken. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. Take the time to learn more about these different options so you can make the best decision possible.
Protect your house. You don’t have to lose your home just because you are filing for bankruptcy. 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. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Remember that missing a payment to the plan will result in your case being dismissed.
As you are no doubt aware, bankruptcy is much talked about in today’s economy. So, use what you learned today so that you know what decisions to make while you contemplate filing for bankruptcy.
