Anything leading you to going through bankruptcy is not a happy tale, but the life you live after might be. The bankruptcy laws allow you to have a second chance at building your credit and meeting all your financial responsibilities. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If this is your case, you should do some research about bankruptcy laws in your state. Laws differ from one state to the other. You may find your home is safeguarded in one state, while in another it isn’t. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
Protect your house. Filing for bankruptcy does not guarantee that you will lose your house. 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. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Spending time with the people you love is something you should do now. Filing for bankruptcy, and all that comes with it, can be hard to handle at times. It is long, full of stress and leaves individuals having feelings of shame and guilt. It is not uncommon for a person to feel the need to pull away from loved ones during the process. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
After you have filed for bankruptcy, enjoy your life. Many debtors stress-out during the time of filing. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. You must realize that things will get better over time.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. However, the process of approval is a bit more stringent. You need to contact your trustee so you can get approved for a new loan. You need to develop a budget and show that you will be able to afford the new payment. Be ready to justify the purchase that you need the loan for, too.
Do not put off filing for bankruptcy. It is quite common for people to linger on hoping that their financial difficulties will somehow resolve; however, this very rarely happens. Your debt can quickly get way too large, and as a result, you may discover that you must foreclose your home or garnish some of your wages. As soon as you know that you are too far over your head, make the move to call an attorney skilled in bankruptcy court, to weigh your options.
Include your entire financial information when you file for bankruptcy. If the court thinks you are attempting to conceal information, your petition could be denied. No sum is too small to be included; err on the side of caution and include everything. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
Don’t just assume bankruptcy is the right option, especially if you have not considered others. One of these choices is consumer credit counseling. A number of non-profit companies can assist you. They’ll talk to creditors and strive to get both your payments and interest rates lowered. You’ll make your payments to the company, and the company will pay off your creditors.
As you are heading towards a bankruptcy filing, don’t be tempted to run up cash advances on your credit cards in the belief they will be erased in the legal proceedings. Not only is this fraud, but you could end up having to pay back the money, even once you have filed for bankruptcy.
Be mindful of paying off outstanding obligations before you file a bankruptcy petition. Find out from a bankruptcy attorney what a court needs to see as a cut off date for the last time you pay anyone you owe money to. Do your research and figure out the laws for you.
List each of your debts clearly and efficiently. This will be the basis for your bankruptcy filing, so make sure you include all the debts you are aware of. Go over all your financial records and do not forget anything. Remember to take your time here. Rushing through will ensure that some numbers somewhere will be mixed up and then the process will blow up in your face.
Be sure to list any and all debts that need to be eliminated when you file your bankruptcy paperwork. If you forget to include any of your debts in the filing, you lose the chance to discharge them. It is imperative that you take responsibility to let the court know about all debts by the deadline they give you.
As said previously, a situation leading to bankruptcy can be upsetting. Afterward, however, you can have an easier time. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!