With the state of the economy, job market, and stock market, bankruptcy has become more and more common. Most people will put all the blame on the poor economy. You need to approach bankruptcy with a little knowledge so that you can simplify the process. Within this article, you will find the knowledge and need.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If this sounds like you, start familiarizing yourself with your state laws. When it comes to bankruptcy, states have varying laws. For instance, your home might be protected in some states while you might lose it in others. Be sure to have some familiarity with the law in your jurisdiction.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If you do, then try applying for a coupe of secured cards. This will prove that you want to improve your credit score. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you aren’t aware of this, you could lose some assets that you value.
Bankruptcy Laws
Before undertaking the bankruptcy process, ensure you have made the correct decision. There are plenty of other options open to you, like consumer credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Before you file, make sure you understand current bankruptcy laws. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. If your debt is relatively low, you may be able to manage it with credit counseling. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Always protect your house. There are many options available to help protect you from losing your home. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Be around family as much as possible. Undergoing bankruptcy can be a difficult experience. It is long, hard and sometimes leaves people feeling guilty or ashamed. A lot of people become depressed and withdrawn until their bankruptcy is discharged. But, isolating yourself from others could bring out more depression. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.
If your income exceeds your obligations, you should not seek bankruptcy protection. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Don’t forget to enjoy your life once your finances get fixed. It’s not uncommon to be overwhelmed by the filing process. Depression can ensue from the stress if action isn’t taken. Once the process if over, your life will improve.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Chapter 7
Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
As you can see, bankruptcy is quickly becoming more popular due to the poor state of our economy. Let the advice you have received from this article be a guide to help you make the right choices for you and your finances.
Remember to only file for bankruptcy if you need to. You may well be able to regain control over your debts by consolidating them. Going through the bankruptcy process is a long drawn process which at times can be incredibly stressful. It will also make it tough for you to secure credit after your filing is complete. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.