Bankruptcy is a tough decision, one that should be given a lot of thought. Read the tips and suggestions in the following article so you know what to expect and just what you should be doing before you make that important decision. Research the topic extensively in advance.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. Many sites, including the U.S. D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
You may still have trouble receiving any unsecured credit after a bankruptcy. If you are in this situation, applying for a secured card may be the answer. This will demonstrate that you’re seriously trying to restore your credit. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
No matter what, don’t give up! Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Interview and research attorneys before choosing one to help you with your bankruptcy.
Before filing for bankruptcy, hire a qualified attorney. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Every one of your debts will be gone if you decide to go with Chapter 7. With very few exceptions, the connections between you and your creditors will be severed. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Looking for an attorney will help you find a lawyer you feel good around.
Your most important concern is to protect your home. Bankruptcy doesn’t always mean you’ll lose your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Take time to research this online and see the pros and cons for filing each one. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Research Chapter 13 bankruptcy, and see if it might be right for you. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Just know that missing one payment could cause your case to be dismissed.
You should know by now that bankruptcy does not just pop up out of nowhere. When dealing with a claim, you literally cannot afford to skip steps or to get anything wrong. Keep this article’s advice in mind and you will probably stand a better chance of laying all the groundwork for your own bankruptcy properly.