It can be very complicated to file for personal bankruptcy. Different bankruptcy filing types are available, and the right one for you will depend on the kinds of debts you have and your overall financial picture. Prior to filing your petition, you really need to gain an understanding of how personal bankruptcies work. The advice in this article can be a good starting point for you.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Retirement funds should be avoided at all costs. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. Unless there are no other options, your retirement funds should never be touched. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
When it comes to informing your attorney about your case, don’t be fearful. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. Speak up. This is your life, and your future depends on it.
Secured Card
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. In this event, you should attempt to apply for a secured card or two. When you do this, it shows your determination to fix your credit history. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you fail to do so, things could get ugly.
If you can, get a word-of-mouth referral for a lawyer. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
If bankruptcy is an option for you, secure the services of an attorney. There are many different aspects to filing bankruptcy, and you may not understand everything there is to know. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Be sure to weigh all of your options before deciding to file for personal bankruptcy. For example, you want to look into credit counseling. This is the best option for small debts. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Missing a payment under these plans can result in total dismissal by the courts.
Now after reading the above article you see that bankruptcy must be thought over extremely carefully before going through with it. If you decide bankruptcy is right for you, take the proper precautions. This could be a new beginning and a clean slate for you.
Be sure you know how Chapter 7 and Chapter 13 differ. All debt will be eliminated with Chapter 7. You will be removed from any contracts you have with your creditors. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.