There are many people who are now in debt levels over their heads. Their bills pile up higher while debt collectors and creditors keep their phones ringing constantly. If you find yourself in these circumstances, you might want to think about filing for personal bankruptcy. The information in this article will help you to decide if this is an option for you.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If this sounds like you, start familiarizing yourself with your state laws. Bankruptcy laws vary from state to state. Some states may protect you home, and some may not. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
Make certain that you comprehend everything regarding personal bankruptcy by studying online. Many sites, including the U.S. Department of Justice and American Bankruptcy Institute are two such places to look. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If that is the case, you should try applying for one, or two secured cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. Eventually, you could be able to obtain unsecured credit.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. The person you choose to file with needs to know both the good and bad aspects of your finances. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
If you’re going to file bankruptcy, you need an attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. Personal bankruptcy attorneys can help make sure everything is done properly.
Make sure your home is safe. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Don’t be tempted to race toward a bankruptcy without taking time to make sure it is the right thing for you to do. Consolidating current debt could make it easier to manage. Bankruptcy is a stressful process. You will have trouble getting credit down the line. So, consider bankruptcy only as a last resort when you have no other choice.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy. 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 window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. Many times, payments can be lowered through Chapter 7 bankruptcy. 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.
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. When filing Chapter 7, you are not legally responsible for the debts in your name. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
Clearly, it is possible for those thinking of filing for bankruptcy to get a great deal of assistance. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.