Nowadays, there are many people experiencing the woes of overwhelming debt. Creditors and bill collectors hound them and there is no slow down in their bills. If this is happening to you, personal bankruptcy may be an option. Have a look at the information provided here to ascertain if your situation can be improved using this method.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. The laws governing bankruptcy vary from state to state. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Be sure to have some familiarity with the law in your jurisdiction.
Be certain you are making the right choice before you file for bankruptcy. There are other options available, such as credit counseling for consumers. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. It is a good idea to consult several attorney before deciding on one. Only choose a lawyer if you feel like your questions were answered. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. Take the time to meet with a number of attorneys.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. An attorney will make sure that everything is being done correctly.
Consider filing a Chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. You can secure your home under Chapter 13 and pay your debts with a payment plan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Just know that missing one payment could cause your case to be dismissed.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. If you are about to lose your house, talk to your lender about a loan modification. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
You are not alone when you are debating filing for bankruptcy. 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.