Are you in a financial jam and you feel like bankruptcy is the only option for you? Understand that you are not the only one. Many individuals have turned to bankruptcy as a means of finding relief from financial hardship. You are going to be given advice in this article that will help ensure the bankruptcy process goes properly.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Talk to the lawyer and not his assistant, who may not be legally able to help you. Seeking out different attorneys is all part of the process until you find someone that you can trust.
You can take steps to hang onto your house. You don’t have to lose your home just because you are filing for bankruptcy. Depending on certain conditions, you may very well end up being able to keep your home. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Ensure that you bankruptcy is your best choice. Consider whether debt consolidation may be a more viable alternative. Bankruptcy cases are long, anxiety-filled experiences. Credit will be much harder for you to come by after you file for bankruptcy. So, consider bankruptcy only as a last resort when you have no other choice.
Do not use your retirement fund or savings to pay off creditors. You should never touch your retirement accounts, unless you have absolutely no choice. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. There will, however, be obstacles. Your trustee must approve any new loans. It is important to make a budget and prove that you are able to afford the payment. You will also need to have a good reason why you need the item.
After filing for bankruptcy, you could have trouble acquiring unsecured credit. If you find that to be the situation, consider requesting secured cards. You can exhibit your desire to rebuild your credit this way. In time, you might be granted unsecured credit again.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. There are few debts that can’t be discharged. If you are told differently by a collector, research the information yourself. If you find they are in error, get the name of their company, phone number and any identifying info so you can report it to the attorney general in your area.
Bankruptcy can cause anxiety and a host of other physical and emotional issues. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Try not to pick a lawyer based on cost alone. What you need is a thoroughly competent lawyer, and this does not imply that you have to pay through the nose. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. You might even go to a bankruptcy hearing to watch how a lawyer presents his case.
Don’t wait to file for bankruptcy. It is a mistake to ignore your financial troubles, hoping they will go away on their own. Being in debt can quickly put you into very deep hole and if you do not rectify the situation fast, you could face wage garnishment or even worse, foreclosure. As soon as you find yourself experiencing financial problems, take action and discuss your options with a bankruptcy attorney.
See if there is an alternative you can use before declaring bankruptcy. For example, consumer credit counseling programs can help if your debt isn’t too large. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Be certain to have a good understanding of bankruptcy regulations prior to filing a petition. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Also, it is against the law for a person to acquire more debt on their credit card prior to filing.
When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. It can be difficult to ask for help, but as you wait, you accrue more debt. Take responsibility to talk with a bankruptcy expert sooner, rather than later. The longer you wait, the more difficult the situation can become.
As you can see, you are not alone in your need to fix your finances by choosing bankruptcy. But, now that you’ve read this article, you should have more knowledge about the situation. The tips in the article above will help you get through your bankruptcy.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7, for example, will wipe away every one of your outstanding debts. Any ties you have concerning creditors will definitely be dissolved. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. You must know about the different bankruptcy types, and how each can affect you.