Bankruptcy is a tough decision for people to make, but it may be necessary, sometimes. Going through this ordeal is easier when equipped with some good ideas and insights about what is going to be involved. Keep reading for tips from someone who has stood in your shoes.
Ask yourself if filing for bankruptcy is the right thing to do. Other available options include consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.
Don’t be afraid to remind your attorney a heads-up about important aspects of your case. Don’t just assume they already know and that they’ll remember something important details committed to memory or written down. This is your bankruptcy case, so never be nervous about speaking your mind.
Secured Card
Make sure you keep reminding your attorney about any important details in your case. Don’t assume that he’ll remember something from a month ago; tell him again. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
You might find it difficult to obtain an unsecured credit card or line after filing for bankruptcy. If you do, apply for a secured card or two. This will show other people that you’re serious when it comes to having your credit history while minimizing the bank’s risk. After using a secured card for a certain amount of time, you will then be able to acquire credit cards that are unsecured.
If a personal recommendation comes your way, get a word-of-mouth referral for a lawyer. There are a number of companies who may take advantage of your situation, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. This will ensure that you do not have any surprises once you have filed bankruptcy.
The person you file with needs to know both the good and bad aspects of your financial condition.
Stay up to date with any new laws that may affect your bankruptcy filing laws. Bankruptcy laws are in constant flux, and you need to be aware of any changes so your bankruptcy can be properly filed. Your state’s legislative offices or website should have up-to-date information about these changes.
Make certain that you comprehend the differences between Chapters 7 and 13. If Chapter 7 is what you file, your debts will get eliminated entirely. Your former ties with creditors will cease to exist. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. You have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
Before declaring bankruptcy, be sure you have considered alternative options. For instance, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. You might also be able to negotiate lower payments yourself, but be sure to get any debt agreements in writing.
Bankruptcy doesn’t always mean that you have to lose your house. Depending on certain conditions, you may end up keeping it. You may also want to check into homestead exemption either way just in case.
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Unsecured Debt
Consider if Chapter 13 bankruptcy. If you are receiving money on a regular basis and your unsecured debt is under $250,000, Chapter 13 will be available to you. This plan normally lasts from three to five years, your unsecured debt will be discharged. Keep in mind that missed payments will trigger dismissal of your whole case to get dismissed.
Remember to have fun with your life when you’re done with the filing process initially. It’s easy to be stressed during this time. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. Your life will see improvement after you get past the bankruptcy.
Think about all your options before pulling the choices available to you when you file for bankruptcy. Loan modification can help you get out of this. The lender can help your financial situation by getting interest rates lowered, so they may be willing to forgive some fees, and in some cases will allow you to pay the loan over a longer period of time. When all is said and done, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
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. Gleaning insight from others who already walked the same path can minimize complications and help to reduce your own stress at a difficult time.
Gain all the knowledge of personal bankruptcy that you can. There are several pitfalls with personal bankruptcy that can make your case harder to handle. Not only could your case be dismissed, but it may also affect your ability to refile. Before continuing, research personal bankruptcy. This will make things a lot more simple in the long term.