It’s never great when someone needs to file bankruptcy. The embarrassment can be overwhelming when friends discover your poor financial position. Take heart, whether you choose to file bankruptcy or not, there are options available to help you get through your financial difficulties.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Only make your decision if all your questions and concerns are adequately addressed. It’s isn’t necessary to make a choice right away. After your consultations, do some additional research on each attorney you consider qualified for the job.
Brush up on the latest bankruptcy regulations before you decide whether or not to file. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. Your state’s website should have the information that you need.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy for your filing. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Being with the people who you love should be still be a top priority. The process for bankruptcy can be hard. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. A lot of folks decide to hide themselves from the world around them until the end of the process. Isolating yourself from your loved ones can lead to feelings of depression. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. Chapter 7 bankruptcy is one of the most common and effective. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
It is possible to obtain new vehicle and home loans while a Chapter 13 case remains active. However, it will be a longer and more arduous task. You will need to go through various hoops in order to be approved for any new loan type. Draw up a budget, demonstrating that you can afford the new loan payment. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Depending on your current financial situation, it may or may not be necessary for you to file for bankruptcy. Take the information provided here and avoid filing if at all possible. Apply the guidance you just received and see what it can do to improve your financial circumstances and bolster your credit record.