Bankruptcy is a hard decision, but sometimes a necessary one. It is best to go into this kind of thing when you know what going on and how to go about doing it. Keep reading to learn some solid advice for navigating the treacherous world of bankruptcy.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If you find yourself going through this, you should know all about the laws that are in your state. Bankruptcy laws vary from state to state. For instance, your home might be protected in some states while you might lose it in others. Familiarize yourself with the bankruptcy laws of your state prior to filing.
Before you file for bankruptcy, carefully consider if it is the right option for you. Other available options include consumer credit counseling. Bankruptcy has a negative effect on your credit reports, in that it is permanently there. Before you take this step, make sure all your options have been considered.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Unsecured Debt
Thing about filing a Chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Talk with your lawyer about getting lower payments for any car you wish to keep. In many cases, you can reduce your payment by filing a Chapter 7 petition. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
Make sure you consider implications of bankruptcy before filing for Chapter 7. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
Don’t overly concern yourself with any negative feelings you are having. The bankruptcy process makes people feel guilty and ashamed. Feelings such as these are not of value to you and it is possible for them to be psychologically harmful. If you want to cope with your bankruptcy filing successfully, you must maintain a positive point of view.
File for bankruptcy before your finances get completely out of control. Some people will just ignore their outstanding debts, hoping that someone or something will come and save them, but this never ends well. It is easy you to lose control of your debt, and avoiding the problem will make things worse. Once you realize that the debt you have is too much for you to handle, start thinking about talking to a bankruptcy attorney, they can guide you throughout the entire process.
No one ever wants to declare bankruptcy, but sometimes, it is just unavoidable. Now that you have read this article, you have been exposed to some ideas, insights and advice from those who have gone down this road before. Spending some time learning for others who have gone through the same thing reduce some of your stress.
