The economy is in very bad shape right now. Even with a depressed economy, jobs are lost despite debts needing to be paid. Debts result in bankruptcy, which is never a good thing. If you are in a difficult situation and contemplating bankruptcy, this is the perfect article for you.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. Whoever provides your legal consultation must be privy to all of your financial information. Put everything out on the table and craft a wise plan for handling the situation the best you can.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7, for example, will wipe away every one of your outstanding debts. All the things that tie you to creditors will go away. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Protect your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. Depending on certain conditions, you may very well end up being able to keep your home. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
It is imperative that you know for sure that bankruptcy is the option you need. Perhaps consolidating your existing debt can make it easier to manage. Filling for bankruptcy is a lengthy, stressful process. You will have trouble getting credit down the line. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Chapter 13 bankruptcy might be a good option, so don’t overlook it. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. You can secure your home under Chapter 13 and pay your debts with a payment plan. Expect to make payments for up to 5 years before your unsecured debts are discharged. Missing a payment under these plans can result in total dismissal by the courts.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. It is a little more difficult, though. You will have to get this loan approved by your trustee. You need to develop a budget and show that you will be able to afford the new payment. You also have to prepare yourself to explain the reasons you need to buy the item.
When filing for personal bankruptcy you should always be aware of your rights. You might hear from your creditors that your debts cannot be canceled through bankruptcy. Only a few debts, including child support and tax liens, are ineligible for bankruptcy. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.
Do not forget to list each and every debt you have. Omissions or errors may cause your case to take more time to resolve, or even be rejected entirely. You might think something is insignificant, but you should add it anyway. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
If you intend to file bankruptcy soon, you may want to discontinue paying all debts. You might be legally unable to file for bankruptcy if you were still paying your creditors ninety days ago, or your family members a year ago. Learn the rules regarding bankruptcy before making any final financial decisions.
After going through bankruptcy, a lot of people think they are being financially responsible if they shun all forms of credit. Although this may seem plausible, this actually isn’t doing them any good. If you don’t use credit at all, you will be unable to re-establish good credit necessary for cars, homes and other future purchases. Start with one credit card to get your credit going in the right direction.
Choose a bankruptcy attorney carefully. Many newer lawyers enjoy this kind of law. Ascertain that your choice of attorney is an experienced, properly licensed one. If you want to check for a proper lawyer, you can use the Internet, ask your friends, or look for a popular lawyer via the Yellow Pages. The idea is that you want to ensure your lawyer’s competency on the issue.
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. Be sure to check your credit report for accuracy of closed accounts and discharged debts. Contact the credit reporting agencies if there is a discrepancy in order to rebuild your credit.
As stated from the above article, the economy right now not in the best of shape and lots of people are hurting financially. Even if you do not have a steady paycheck, you still have options to help you avoid filing bankruptcy. This article has likely given you some ideas on how you can protect yourself from having to file for bankruptcy. Let the force be with you.