If you are deeply in debt and considering bankruptcy, take heart. On the Internet lives plenty of information on how you can avoid bankruptcy. Read the information provided here to see if bankruptcy can be avoided.
Consider all options before deciding to file for personal bankruptcy. It is possible to take advantage of other options, like 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.
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. All debt will be eliminated with Chapter 7. All the things that tie you to creditors will go away. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. Both options have advantages and drawbacks, so do your research before deciding.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. 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. Looking for an attorney will help you find a lawyer you feel good around.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Determine if bankruptcy is necessary. Perhaps just consolidating some of your existing debt, could make them easier to manage. It is not a quick and easy process to file for bankruptcy. The future of your credit will be greatly affected. Thus, you must make certain that bankruptcy really is the only viable solution to your problems.
Do not forget to make quality time for friends and family members. The process of bankruptcy can prove particularly brutal. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. Many people don’t feel like socializing during the ordeal. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
Interest Rates
You should weigh every option before thinking about bankruptcy. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. If you are looking at foreclosure, think about a loan modification program. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
If you are thinking about filing for bankruptcy, one of the first things you should do is look into the laws of your state. For instance, it’s prohibited for an individual to transfer assets to someone else a year before filing for bankruptcy. Also, it is against the law for a person to acquire more debt on their credit card prior to filing.
Do not doddle with whether or not bankruptcy is for you. Your debt will only continue to mount as you waiver on the decision, difficult as it might be. Talk to a lawyer as soon as you can to get the advice that you need.
Realize that bankruptcy may be better for you when it comes to your credit. Continuing to miss your payments can be really bad on your debt. Bankruptcies can remain on your credit reports for 10 years, you can jump right into repairing your credit. One of the nicest things about bankruptcy is that it gives you a fairly fresh start.
Contrary to popular belief, you won’t necessarily lose your assets if you happen to file for bankruptcy. Many times you will be allowed to keep your personal property. Whether jewelry, furnishings, electronics and even clothes – these items can be protected. The laws of your state, the kind of bankruptcy you go for, and your finances will determine whether you will lose large assets like your car or your home.
Bankruptcy Attorney
An attorney who specializes in bankruptcy law can be a good investment if you find yourself thinking about filing. Here are some of the things a qualified bankruptcy attorney can do for you: give you solid advice, simplify the complexity of the process, represent you in the courtroom. A good bankruptcy attorney will answer your questions and help you in filling out and filing your paperwork.
It’s a good idea to contact the three major credit bureaus and get fresh copies of the credit reports they have on you once your bankruptcy is a few months behind you. Check to make sure that your report accurately shows that your debts have been discharged and that closed accounts are also updated. If you find any discrepancies, immediately follow up on them so you can continue to repair your credit.
Proper planning is the best place to start. If it’s possible to get some more time to pay your bills, take it. Remember to keep working towards your goal of avoiding bankruptcy. The time to plan you future is now so get on with it.
