If your debts have skyrocketed out of control and you are considering filing for personal bankruptcy, worry no more. By simply searching online and doing a little research you can possibly avoid filing for bankruptcy. If you are ready to consider alternatives to a bankruptcy filing, the advice presented here may help.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If this is your case, you should do some research about bankruptcy laws in your state. Each state has their own bankruptcy laws. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. You should be aware of local bankruptcy laws before filing.
Don’t be afraid to remind your lawyer about important aspects of your case. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Credit Card
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. Look into getting a secured credit card in order to get back on your feet with building credit. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. It will take time, but when creditors see a pattern that satisfies their need to see your good faith with payments, you will then be able to apply for unsecured cards.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Free Consultations
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Only choose a lawyer if you feel like your questions were answered. You can think about your decision before making a commitment. Take your time, and schedule consultations with more than one lawyer.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. If your debt is relatively low, you may be able to manage it with credit counseling. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. You will be removed from any contracts you have with your creditors. 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 is vital that you know the differences between these types of bankruptcies, in order to find the option that’s best for you.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Take time to research this online and see the pros and cons for filing each one. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Unsecured Debt
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. 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. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Look at all the alternatives to bankruptcy before filing. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. If you are facing foreclosure, consider a loan modification plan. Your creditors will be willing to work with you to allow you to pay off your debts. They may be able to take late fees off of your account, cut down your interest, or even extend the loan’s repayment period. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
Proper planning can put you in the right place. Any steps you take that give you additional time to address your debts are good ones. If you are making efforts, then you should have nothing to worry about. Get your plan together today, and start working towards a better financial future.
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