Sadly, bankruptcy is now a household word. Most people cite the economy for having to file for bankruptcy. Before deciding to seek bankruptcy, you need to know the right information and what to expect; that way, you will make better decisions. Keep reading for the knowledge you need.
Try to make certain you are making the right choice prior to filing your petition. You have other options, including consumer credit counseling help. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. Your attorney and trustee should be privy to all information about your finances. Being honest is both the right thing to do and, moreover, it is required by law.
Stay up to date with any new bankruptcy filing laws. Bankruptcy laws constantly change and it’s crucial you know about them so you the process of filing for bankruptcy goes smoothly. If you are not sure about the current laws all you have to do is look into what laws have been passed.
60 Month Period
Make certain that you comprehend the differences between Chapters 7 and 13. Chapter 7 eliminates all debts. All of your financial ties to the people you owe money to will disappear. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
You can take steps to hang onto your house. You do not have to lose your home in the process of a 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 are still going to want to check into homestead exemption either way just in case.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Do not let bankruptcy consume you, make sure you make time for your friends and family. The whole process of filing for bankruptcy is hard. It is long, stressful and makes people feel like losers. Lots of people choose to disappear for a while until the entire process is over and done with. But, keeping to yourself is likely to cause even greater sadness and despair. Remember that it is not your families fault for your financial hardships and use this time to pull together and be strong.
If you are making more money than you owe, bankruptcy should not even be an option. While filing may seem simple and a way to get out of paying your debts, it does tremendous amounts of long-term harm to your credit report.
If you really want to keep your vehicle, speak with your lawyer about possible choices. Many times, payments can be lowered through Chapter 7 bankruptcy. You must have bought the car 910 or more days before you filed, the loan must have a high interest rate, and you have to have a secure and steady working history in order for that to work.
Before you file for bankruptcy, make sure you understand your rights. Bill collectors will lie to you and say you can’t have their bill discharged. Most states allow for the majority of debt to be included on a bankruptcy. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Look at bankruptcy as a chance to mature and take responsibility for your personal finances. Feelings of low self-worth, shame and guilt are common for those who have come to the point where bankruptcy is their only option. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. Remembering to stay positive as you go through financial difficulties is a great way to deal with your bankruptcy filing.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. If a creditor notices that activity they can constitute it as fraud and sue to have you pay it all back even after your bankruptcy is complete.
Clearly, the economy nowadays has had a dreadful effect on individuals and has caused bankruptcy to be a topic that is on everyone’s minds. To ensure that you make great decisions when dealing with bankruptcy, utilize the excellent advice given above.
