Tips For Using Bankruptcy To Your Advantage

Those who face personal bankruptcy sometimes feel negative emotions, like anger. These feelings can make it hard to make it through the day, and can leave people feeling stuck. No one is truly stuck when it comes to personal bankruptcy, as you will see through the tips from this article.

Ask yourself if filing for bankruptcy is truly your best option. It is possible to take advantage of other options, like consumer credit counseling. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.

If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. It’s crucial to read that list before filing to see which of your prized possessions can be seized. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.

Do not abandon hope. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Speak to a lawyer who will be able to help you file the necessary paperwork.

Personal Bankruptcy

Be sure to hire an attorney before you embark upon filing for personal bankruptcy. With all the ins and outs of bankruptcies, it can be hard to grasp all the knowledge. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.

Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.

Make sure your home is safe. Bankruptcy filings do not necessarily mean that you have to lose your house. There are mitigating factors, such as lose of value, or multiple mortgages. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.

Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.

Chapter 13

Consider Chapter 13 bankruptcy, if you chose to file. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.

If you’re concerned about the details of keeping your car, try to ask your attorney about details regarding lowering your monthly payments. You can often lower your payment using Chapter 7 bankruptcy. There are qualifications, such as the loan being high interest and a good work record for this option.

Make sure that you disclose every bit of financial information on your bankruptcy petition. Leaving out information either purposely or by mistake can prolong your petition, or have it dismissed completely. No sum is too small to be included; err on the side of caution and include everything. Include all jobs, assets and loans.

This article has, hopefully, taught you that bankruptcy does not mean life is over. While filing for bankruptcy is initially an emotional downer, things will improve. Follow our tips to work your way past your burden of debt.

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