A lot of folks in modern times are deep in debt. Debt continues to mount while collection phone calls continue to rise. If this is your story, then personal bankruptcy may be for you. Continue reading this article so you can figure out if this is something you should do.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If this describes your situation, it makes sense to become familiar with relevant laws. Bankruptcy rules vary by jurisdiction. For instance, some states protect you from losing your home in a bankruptcy, but others do not. You should be familiar with the laws for your state before filing for bankruptcy.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. It is important that you are completely transparent, showing everything financial that needs to be known. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. 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.
Credit Cards
You may still have trouble receiving any unsecured credit after a bankruptcy. If this happens, instead you should turn your attention to secured credit cards. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. After a certain time, you will then be able to acquire credit cards that are unsecured.
Consider filing for Chapter 13 bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
Before you decide to file bankruptcy proceedings, determine which assets will be safe. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For example, you want to look into credit counseling. This is the best option for small debts. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. The vehicle must have been obtained more than 90 days before filing and be a loan with high interest. You must also have consistent work history.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7, for example, will wipe away every one of your outstanding debts. All happenings with creditors will disappear. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
As you can now see, there is much information available that can help you through your bankruptcy. If you approach it from just the right way and with a crystal clear, aware mind, you will experience the relief you wanted and will help you to get up again.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. This process is less that glamorous, and it makes most people lose their self-esteem. These feelings, however, are of no benefit to anyone, and they can be detrimental to your mental health. Having the right outlook during a tough financial upheaval is a great attitude in coping with bankruptcy.