As you probably know, the economy is in the toilet. A lot of people with no jobs find themselves in debt. Deep debts usually wind up in bankruptcy. This is not a pleasant situation. If you are dealing with the possibility of filing for bankruptcy, then continue on to the article below for some helpful tips.
You should be able to meet with a specialized lawyer for free to ask your questions. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. It is not necessary to come to a decision immediately following the meeting. Consulting with several attorneys will also help you find someone you trust.
Before declaring bankruptcy, ensure that all other options have been considered. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
60 Month Period
Make certain that you comprehend the differences between Chapters 7 and 13. Chapter 7 eliminates all debts. You will no longer be liable for any money that you owe to your creditors. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Safeguard your home. You do not have to lose your home in the process of a bankruptcy. Depending on certain conditions, you may very well end up being able to keep your home. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
It is imperative that you know for sure that bankruptcy is the option you need. You may find consolidating your debt may be simpler. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. Having a bankruptcy on your record will hinder your ability to get credit in the future. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.
Consider Chapter 13 bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. However, if you were to miss a payment, the court would dismiss your case right away.
Do not let bankruptcy consume you, make sure you make time for your friends and family. Undergoing bankruptcy can be a difficult experience. It is long, stressful and makes people feel like losers. It can be hard to face the world while the bankruptcy process is taking place. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
If you are making more money than you owe, bankruptcy should not even be an option. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
Before you file for personal bankruptcy, weigh all of your options. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. If foreclosure looms, think about getting your loan plan modified. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
Although the economy is slowly picking up, there are still many people left without jobs and a decent wage. Even long-term job loss does not inevitably have to result in bankruptcy. It is our sincere hope that this article has helped you to determine a way to avoid filing for personal bankruptcy yourself, or will help a friend or loved one avoid this fate. Take this information and apply it to your personal financial situation.