Being buried in debt is a terrifying experience. It is possible for debt problems to escalate out of control, overnight. Unfortunately, once you’re in this situation, fixing it can be hard. You might consider bankruptcy, look through this article and find out why.
Most people end up filing for personal bankruptcy because they owe more than they make. If this sounds like you, start familiarizing yourself with your state laws. Every state has a separate law having to do with bankruptcy. Some states protect your home, and others do not. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States DOJ, the NACBA, and the ABI all have useful information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. The lawyer representing you when you file needs to have full knowledge of your financial situation. Don’t withhold information, and create a smart way of coping with the reality of the situation.
There is hope! You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Talk to a lawyer for help with the petition filing process.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Before you file for bankruptcy, make sure you absolutely need to. You might be better off consolidating your debt or availing yourself of some other remedy. The whole process of filing for bankruptcy can be a long, and hard one. It will also make it tough for you to secure credit after your filing is complete. This is why it is crucial that you explore your other debt relief options first.
Look into filing Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Do not forget to make quality time for friends and family members. Going through bankruptcy is a lot of stress. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. Avoidance of friends of family during the process is not uncommon. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. 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. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
There are times when the events of life can be quite overwhelming and you can feel quite helpless. By following the pointers presented in this article, you will be able to keep your finances under control while proceeding through bankruptcy. Apply the advice from this article and you will be on your way to realizing financial freedom.