Drowning in debt can be overwhelming. Once you realize how much in debt you are, it can make you lose your focus on everything else in life. Unfortunately, once you’re in this situation, fixing it can be hard. This article will help you decide if bankruptcy is the way to resolve your debt problems, and if it is, give you some tips for navigating the process.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States DOJ, the NACBA, and the ABI all have useful information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
No matter what, don’t give up! If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Consult with a lawyer who is able to assist you in the filing of your petition.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. You should make a final decision only once all of the questions or concerns are sufficiently attended to. It’s isn’t necessary to make a choice right away. That gives you the chance to speak to a number of lawyers.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. These laws change regularly and you should stay up-to-date so you can make the best decisions. To stay up-to-date on these laws, check out your state’s government website.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. It is possible to take advantage of other options, like consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
Investigate your other alternatives before you decide you have to go with bankruptcy. It might be possible to consolidate some of your debt instead. Bankruptcy is not a simple, breezy course of action that should be taken lightly. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.
Chapter 13
Consider filing using chapter 13 bankruptcy. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. Leave your retirement accounts untouched unless there is absolutely no other alternative. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
After you have filed for bankruptcy, enjoy your life. Many people feel a lot of stress while they work through the bankruptcy process. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Life is going to get better once you get through this.
Keep in mind that filing for Chapter 7 bankruptcy may affect other people than just you, including family members, and in some cases, business associates. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. This is a lot harder. You will be required to meet a trustee and be approved for a new loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. You will always have to let them know why this item needs to be purchased.
Do not hesitate to remind your lawyer of any details regarding your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. This is your bankruptcy and your future, so never be nervous about speaking your mind.
If you are thinking about filing for bankruptcy, one of the first things you should do is look into the laws of your state. For instance, you may not be aware that a filer is forbidden from transferring assets from his or her name for one full year before the petition is filed. In addition, it is unlawful for the filer to increase the amount of debt they are carrying on their credit cards right before they file.
Gain all the knowledge of personal bankruptcy that you can. Without knowing the exact rules, you could inadvertently run into serious issues that could ultimately lead to your bankruptcy failing. If you commit severe mistakes, your bankruptcy could be dismissed. Before you begin bankruptcy proceedings, research as much as you can. Doing so will make the process a lot easier.
Never take big cash advances from the credit cards that you own prior to filing for bankruptcy, even though you know that the debt will be erased. This is considered fraud, and even after bankruptcy you can be forced to pay all of that money back to the credit card company.
Protect your house. It isn’t inevitable that you will lose your house when you file for bankruptcy. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Do not drag your feet when trying to figure out if bankruptcy is right for you. Yes, it is hard to admit that you need help; however, the longer you wait the deeper in debt you get. By consulting a professional, you will be able to get the advice that you need before everything gets too complicated.
Sometimes life just happens and you feel like there is little that you could do about it. By following the pointers presented in this article, you will be able to keep your finances under control while proceeding through bankruptcy. You can make a true difference in your day-to-day life by following the advice we have presented here.