Nowadays, there are many people experiencing the woes of overwhelming debt. Countless Americans are currently being harassed by debt collectors on a daily basis. If you are in that situation, it may be time to consider personal bankruptcy. The bankruptcy laws vary in each state, so educate yourself on the laws in your state.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. It is necessary to be open regarding both the positive and negative aspects of your financial life. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Learn of new laws prior to deciding to file for bankruptcy. Laws are subject to change, and it’s important that you’re educating yourself about current code only. To learn about any changes, search the Internet or contact your state’s legislative office.
Protect your house. Filing for bankruptcy does not mean you have to lose your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. 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.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Be sure you go on the Internet and do your research to see what’s best for you. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Chapter 13 Bankruptcy
Consider filing using chapter 13 bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. You can secure your home under Chapter 13 and pay your debts with a payment plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Do not let bankruptcy consume you, make sure you make time for your friends and family. The process of bankruptcy can seem brutal. It is long, hard and sometimes leaves people feeling guilty or ashamed. Lots of people choose to disappear for a while until the entire process is over and done with. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.
Make sure bankruptcy is truely your only option before filing. Before filing, talk with an attorney who can help you weigh all of your options. You can apply for a modification of your mortgage if your home is going into foreclosure. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Many times creditors are happy to work with you to ensure that you will repay your loan.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. The process of filing for bankruptcy can make people a nervous wreck. That stress could lead to complete depression, if you do not take the necessary steps to fight it. After you have finished filing for personal bankruptcy, your life will improve.
If you are in the midst of a Chapter 13 bankruptcy, it is possible to apply for certain loans. This is harder. First, your trustee will have to approve the loan. Draft a personal budget to show that you will be able to repay your new loan. You also need to be prepared to answer questions about your need for the new item.
As you can now see, there is much information available that can help you through your bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.