You are not alone if you have become a victim of debt. They are harassed by collection agencies and creditors and cannot get their finances under control. If this situation sounds familiar, you may decide to consider filing personal bankruptcy. To learn more about the process and what it means for you, check out the information provided below.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The U.S. Check out the Bankruptcy Institute site and do some research about consumer’s rights. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
Ask yourself if filing for bankruptcy is the right thing to do. You have other choices, including consumer credit counseling. 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.
Always remind your lawyer of specifics that are important to your case. Don’t assume that he’ll remember something from a month ago; tell him again. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Chapter 13 Bankruptcy
Thing about filing a Chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Missing a payment under these plans can result in total dismissal by the courts.
Being with the people who you love should be still be a top priority. The process for bankruptcy can be brutal. At the end of the process, many people are left with feelings of shame and worthlessness. Most people adopt a very negative attitude toward bankruptcy. But, isolating yourself from others could bring out more depression. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. However, it can be more difficult. You need to contact your trustee so you can get approved for a new loan. Draw a budget up and show how you can pay the newer loan payment. You’ll also need a valid reason for making the purchase.
File at exactly the right time to maximize the effect of your bankruptcy. When it comes to filing for personal bankruptcy, timing is everything. While there are times that it is ideal to file soon, there are other times in which you should wait. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Consider your options before deciding to file personal bankruptcy. Perhaps credit counseling can resolve your issues. There are many non-profit debt counseling services available. These organizations can work with creditors to lower your payments and interest rates. All you have to do is give them your payments and they handle paying the creditors.
As you’ve read here, there are many places to find help if you are thinking about personal bankruptcy. When you handle it correctly, a bankruptcy can resolve a great number of your financial troubles and enable you to start turning your life around.