Just the thought of bankruptcy creeping up on you, can make you fearful to say the least. Not being able to provide for their loved ones and debt that continues to mount is an issue for many. If you are haunted by these terrible thoughts, or are about to go through with this, this article will help you in the process.
Ask yourself if filing for bankruptcy is truly your best option. You have other options, including consumer credit counseling help. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Bankruptcy laws vary from state to state so it is important to do your research. You may find your home is safeguarded in one state, while in another it isn’t. Do not file before learning about the bankruptcy laws in your state.
Once you file for bankruptcy, you will have a hard time getting loans or credits. If you do, then try applying for a coupe of secured cards. By doing this, you will be letting people know that you want to fix your credit score. After a certain time, you will then be able to acquire credit cards that are unsecured.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. The lawyer representing you when you file needs to have full knowledge of your financial situation. Don’t withhold information, and create a smart way of coping with the reality of the situation.
Always be honest and forthright when it comes to your bankruptcy petition. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Chapter 7
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 is the best option to erase your debts for good. This includes creditors and your relationship with them will become no longer existent. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Safeguard your home. Filing for bankruptcy does not guarantee that you will lose your house. You can still keep your home, it just depends on your specific situation and the value of your home. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Any bankruptcy consultation should be free of charge. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. The lawyer who properly answers your questions is the one you should hire. You need not decide right away. This will give you extra time to interview several attorneys.
Before you file for bankruptcy, make sure you absolutely need to. You might be better off consolidating your debt or availing yourself of some other remedy. Declaring bankruptcy is a very involved process that can cause a good deal of anxiety. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. You have to make certain that you absolutely have no other choice.
People who are afraid of bankruptcy have good cause to be; the process can be scary and stressful. You may have been scared before, but this article has probably allayed your fears. Apply this advice to improve your situation for yourself and any loves ones.