It can be a complicated process to file for personal bankruptcy. There are different chapters of bankruptcy, and you may qualify for one or more. Prior to filing your petition, you really need to gain an understanding of how personal bankruptcies work. This article will give you some of the important facts about bankruptcy.
The best way to build your credit up after a bankruptcy is making all your payments on time. If so, apply for a secured credit card. This demonstrates to creditors that you are making a good faith effort to repair your credit. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Don’t pay tax requirements with your credit cards with the thought of starting the bankruptcy process afterward, without doing your research first. Credit card debt is handled charge by charge during bankruptcy, and in most states, tax debt cannot be discharged through bankruptcy. If the tax can be discharged, so can the debt. This means using a credit card is not necessary, when it will just be discharged.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. You wouldn’t want to unexpectedly lose any possessions you treasure.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs It is not necessary to decide immediately after your consultation. Take the time to meet with a number of attorneys.
Before filing for bankruptcy, hire a qualified attorney. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It’s crucial to read that list before filing to see which of your prized possessions can be seized. 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.
Be aware of recent changes, if any, in the bankruptcy code. Bankruptcy laws change a lot and before making the decision to file, you need to know what you are getting yourself into. To find out about these changes, you can look at your state’s legislation website or contact their office.
It is important to protect your home when filing bankruptcy. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. Check to see if you pass the requirements necessary to file for a homestead exemption.
Chapter 13 Bankruptcy
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Expect to make payments for up to 5 years before your unsecured debts are discharged. However, if you miss even one payment, the court will dismiss your entire case.
Once your bankruptcy filing is under way, take the time to decompress a little. A lot of debtors usually get stressed when they file. 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 are getting a fresh start, and things will get better.
If you’re continuously making delinquent payments and are constantly missing payments, filing for bankruptcy might just be a kinder, gentler solution for you. While the bankruptcy will appear on your credit report for the next decade, you can start repairing your damaged credit right away. Getting a fresh start is one benefit of bankruptcy.
Be sure you have no other choice but to seek bankruptcy. You may well be able to regain control over your debts by consolidating them. Bankruptcy is a stressful process. Your credit will be impacted for many years. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Personal Property
You do not lose everything that you own when you decide to declare bankruptcy. You can keep some personal property. Personal property includes items like furniture, electronics, jewelry, and clothing. What you are allowed to keep depends on the laws of your state, the chapter under which you file for bankruptcy and how much money you owe to your creditors.
Write down every debt you have. This will be the basis for your bankruptcy filing, so make sure you include all the debts you are aware of. Review your records to determine the precise amounts that you owe. Take your time during this process; don’t rush and make sure all of your figures are correct.
Do not file for bankruptcy if your income is greater than your bills. Bankruptcy may appear like the easier way to avoid paying your old bills, but it is a huge mark on your credit score and remains there for up to 10 years.
Make sure that you include every one of the debts you would like discharged in your bankruptcy filing paperwork. Anything not specifically listed on the filing will be excluded in the final bankruptcy. It is up to you to ensure that all important information is there, so all debts are discharged.
This article has hopefully made it clear that declaring bankruptcy is a big decision that should be considered at length. If it seems to make sense in light of your financial problems, you should seek an experienced bankruptcy attorney who can guide you toward a fresh, clean start!