A lot of people in this day and age are deeply into debt. They are harassed by collection agencies and creditors and cannot get their finances under control. If this sounds a lot like your personal situation, you may have started thinking about filing for bankruptcy. To learn more about the process and what it means for you, check out the information provided below.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. The more knowledge you have, the more you are able to make right decisions and find a new future.
Getting unsecured credit post-bankruptcy will likely be difficult. If this happens to you, think about applying for a couple of secured credit cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After a certain time, you will then be able to acquire credit cards that are unsecured.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Make sure bankruptcy is truely your only option before filing. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. Loan modification plans can help if you are dealing with foreclosure. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
Don’t forget to enjoy your life once your finances get fixed. It is common for people to stress when filing. It is essential to cope with this stress well, to prevent becoming depressed. Things will be sunnier after you take positive steps to move forward.
Make sure you consider implications of bankruptcy before filing for Chapter 7. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. But, creditors will ask for the money from your co-debtor.
Make sure you understand your rights as you file for bankruptcy. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Exhaust all other option prior to filing personal bankruptcy. Credit counseling is one option you should consider. A number of non-profit companies can assist you. They will make arrangements with your creditors so you will have lower payments as well as lower interest rates. You’ll make your payments to the company, and the company will pay off your creditors.
You don’t necessarily have to forfeit all your assets when you file for bankruptcy. You will be able to keep personal property. In other words, your clothes, your television, your computer, your furniture, your jewelry and other household items are safe. Depending on your financial situation and what state you live in, you might be able to keep property such as your home and car, or even recover property that has been recently repossessed.
Compile a list of the money your currently owe. Once you have an idea of who you owe and how much you owe, you can figure out if bankruptcy is really an option for you or not. Go through your papers and records so you are certain about actual amounts. Do not rush through this process; if you want the amounts discharged, you have to get those numbers right.
You will want to retain a bankruptcy lawyer if you decide to file for personal bankruptcy. A qualified lawyer can access your need to file, go to court with you and make the process simple. Your attorney may also help you with any questions you may have, as well as assist you in completing the paperwork you need to complete.
Select a bankruptcy attorney wisely. A lot of rookie lawyers get their start in bankruptcy law. Often times, people choose lawyers that aren’t licensed properly or that don’t have enough experience. Don’t fall victim to this. Internet research is a great tool for investigating a potential lawyer. You will also find information from clients who have dealt with them.
After reading this article, you now know that there are many options available and possibilities to consider when filing for bankruptcy. With an open mind, you will be able to soon get the help you need to help your financial situation.