Going through bankruptcy is a stressful experience. When you find yourself in a financial bind, you realize that your options are limited. Nonetheless, it is possible for you to continue getting the things you need (e.g. a home loan or an automobile loan) even if you have a very low credit score.
Many people need to file for bankruptcy when they owe more money than they can pay off. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Every state has a separate law having to do with bankruptcy. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Become acquainted with local bankruptcy laws before filing.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. The laws governing bankruptcy vary from state to state. For instance, in some states you can keep your home and car, while other states prohibit this. Be sure you educate yourself on local laws prior to filing.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Whoever provides your legal consultation must be privy to all of your financial information. Do not hold back anything, and form a sound plan to make peace with your reality.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Only make your decision if all your questions and concerns are adequately addressed. It is not necessary to decide immediately after your consultation. This allows you time to speak with numerous lawyers.
Check into less drastic solutions prior to declaring bankruptcy. For example, you may want to consider a credit counseling plan if you have small debts. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Take steps to ensure your home is protected. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! You could keep your home; it depends on your home’s value or if a second mortgage is on your home. You are still going to want to check into homestead exemption either way just in case.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. It is a little more difficult, though. Your trustee must approve any new loans such as this. Draw a budget up and show how you can pay the newer loan payment. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
When filing for personal bankruptcy you should always be aware of your rights. Bill collectors will lie to you and say you can’t have their bill discharged. There are not many debts that can not be bankrupted, student loans and child support for example. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
Make sure the time is right when you file a bankruptcy claim. Timing is everything, especially in personal bankruptcy filings. Sometimes, you may need to file quickly; however, at other times, you should wait until the worst is over. Discuss your particular situation with your bankruptcy attorney to determine the best time to file.
When filing for personal bankruptcy, always supply all of your financial information. You can delay your bankruptcy process if you do not add in all important information. Even if it looks insignificant, you must add it to your documents. Include any income from jobs that you do on the side or assets, such as property and vehicles.
Make sure you know what you should be doing when you file for bankruptcy. There are many laws which govern bankruptcy; therefore, to protect your bankruptcy case, know the rules. Not only could your case be dismissed, but it may also affect your ability to refile. Before you go ahead, devote a little time to research and the topic of personal bankruptcy. Doing so will pave the way to an easier process.
Know the laws and guidelines about bankruptcy before you formally file. The code governing personal bankruptcy is a complex area that is subject to much misunderstanding. Not only could your case be dismissed, but it may also affect your ability to refile. This is exactly why it’s imperative that you take the time necessary in order to research what you can about bankruptcy. Doing this will make the process easier.
Before you make the final decision to file bankruptcy, consider the other options you have. Consider credit counseling. There are a lot of organizations that are non-profits and can assist you. They can negotiate with each of your creditors to work out payments that you can afford, along with reduced interest rates. All you have to do is give them your payments and they handle paying the creditors.
Even when filing for bankruptcy you should now be aware that this should not put a damper on your life. If you don’t spend frivolously and repay lenders faithfully, lenders will be more willing to lend to you in the future. Eventually, you will be able to brush every bit of that dirt off of your shoulders and once again be able to live a normal, credit-driven life if you so choose.