Debt is one of the scariest things to live with. One day you’re looking at a little mole hill; the next day you’re staring down a mountain. It doesn’t take long at all before the debt becomes too much to handle. Once you realize you have to handle the problem, the real struggle begins. Read on to find tips, insight, and valuable information for clearing your debt and getting a firm grasp on your finances.
Personal Bankruptcy
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The U.S. Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable 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.
Think through your decision to file for bankruptcy carefully before going ahead with it. You have better options. For example, you could try credit counseling. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
Don’t be afraid to remind your attorney of certain details in your case. Don’t assume that he’ll remember something from a month ago; tell him again. This is your bankruptcy and your future, so never be nervous about speaking your mind.
The best way to build your credit up after a bankruptcy is making all your payments on time. If that is the case, you should try applying for one, or two secured cards. You can exhibit your desire to rebuild your credit this way. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Be aware of recent changes, if any, in the bankruptcy code. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. If you are not sure about the current laws all you have to do is look into what laws have been passed.
Your most important concern is to protect your home. Bankruptcy doesn’t always mean you’ll lose your home. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Chapter 13
Consider Chapter 13 bankruptcy for your filing. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to 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. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Do not forget to enjoy life a little once you get through the initial filing process. Filing is the most intensive step in the process, so afterwards it’s important to let go of some of your stress. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. Once your petition is in the hands of the judge, all you can do is wait.
When you are looking at a Chapter 7 personal bankruptcy, you may well have debts to worry about for which you share responsibility with another person, such as a spouse, family member, or business partner. If you choose Chapter 7, you are no longer responsible for joint debts. However, if you had a co-debtor, they will be required to pay the debt.
Sometimes life just happens and you feel like there is little that you could do about it. Now you can see a few different ways that you can gain control over your finances if faced with personal bankruptcy. Apply the tips you learned from this article into your life.
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