Before you file for bankruptcy, make sure you have considered all your options. If you are contemplating filing for bankruptcy, it means that you are in a dire financial situation. With the solid advice in the article below, you may be able to make a better choice.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. You can learn a lot on the U.S. There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Be certain you understand all you can about bankruptcy by researching reputable sites that offer good information. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. One example would be that a consumer credit program for counseling if you have small debts. 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.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Comparing different lawyers makes it possible to find one with whom you work well.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. Look into getting a secured credit card in order to get back on your feet with building credit. This will show people that you are serious about getting your credit record back in order. Then, in time, it may be possible for you to obtain an unsecured credit card.
Determine if bankruptcy is necessary. Perhaps consolidating your existing debt can make it easier to manage. Going through the bankruptcy process is a long drawn process which at times can be incredibly stressful. Your credit will be impacted for many years. You have to make certain that you absolutely have no other choice.
Chapter 13 Bankruptcy
Thing about filing a Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Remember that missing a payment to the plan will result in your case being dismissed.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Do not hold back anything, and form a sound plan to make peace with your reality.
Do not file for bankruptcy if your income is greater than your bills. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Think about all your options before pulling the trigger. Before filing, talk with an attorney who can help you weigh all of your options. If you are facing foreclosure, consider a loan modification plan. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
Clearly, bankruptcy does not need to be inevitable. By following the tips presented here, you can avoid filing for personal bankruptcy. Start using what you learned today and see how much of a change you can make in your life, so that you do not have to harm your credit history.
Consider filing using chapter 13 bankruptcy. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. 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. Expect to make payments for up to 5 years before your unsecured debts are discharged. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.