Filing for bankruptcy is a serious decision that should be considered throughly. It is vital that you know everything that can happen when you file for bankruptcy. If you want to take the next right step, simply follow that tips presented here. Just make sure you do enough research so that you are more prepared for any future obstacles.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. When it comes to bankruptcy, states have varying laws. For example, the personal home is exempt from being touched in some states, but not in others. Make sure you know the laws where you live before you file.
Think through your decision to file for bankruptcy carefully before going ahead with it. Consider any other options that are available to you, such as consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. 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.
No matter what, don’t give up! If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Interview and research attorneys before choosing one to help you with your bankruptcy.
Be sure your home is well protected. Filing for bankruptcy doesn’t automatically involve losing your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Filing for bankruptcy is not the best choice if your monthly income is enough to cover your bills. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. Creditors would rather be repaid, however slowly, than have you declare bankruptcy.
There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. Chapter seven bankruptcy often provides for the lowering of payments. For instance, you can get lower payments on you car if you purchased it before filing and took a loan with high interests on it.
Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. You may have your responsibility for your portion of the loan discharged under Chapter 7. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. However, it won’t be as easy as it may have been to get one prior to the bankruptcy. You need to speak with your trustee so that you can be approved for a new loan. In order to show that you’re capable of paying off your new loan, prepare a budget that includes its payments. They may also want to know why you believe you need the loan.
It is important to understand your rights when you file for bankruptcy. Collectors may try to convince you that your debt can’t be discharged. Most loans can be discharged outside of certain things, like child support or loans you are paying back due to student lending. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
Find the right time to take action. Filing at the right time can make things go much more smoothly. For some debtors, immediate filing is ideal, whereas in other cases, it is smart to hold off until a later time. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Make sure that you disclose every bit of financial information on your bankruptcy petition. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. No sum is too small to be included; err on the side of caution and include everything. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
As seen in this guide, there are lots of ways on how you can file for personal bankruptcy. Avoid being overwhelmed by too much information. Take a few minutes to think about these tips. Then you will be prepared to make informed decisions about bankruptcy and your financial future.