Although unhappy circumstances in your life might have led you to file for bankruptcy, your life post-bankruptcy can be much better. With a clean slate, it is possible to start over both financially and personally. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
Bankruptcy Laws
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Bankruptcy laws vary from state to state so it is important to do your research. Some states protect your home, and others do not. Be aware of bankruptcy laws before filing your claim.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. 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.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Do what you can to keep your home. Bankruptcy doesn’t always mean you’ll lose your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. You may also want to check out the homestead exemption because it may allow you to keep your home.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. Loan modification plans can be helpful for those facing foreclosure. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. After all is said and done, your creditors will still want their money. For this reason, you may wish to investigate debt repayment programs in lieu of bankruptcy programs.
After you have filed for bankruptcy, enjoy your life. So many people become stressed when they file. Make sure you take care of your part and let your attorney do the rest. You must realize that things will get better over time.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. You can relieve yourself of any liability for debts that you may share with someone else through a Chapter 7 filing. Creditors, however, will hold the co-signer liable for the entire balance of the debt.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. It is more difficult. First, your trustee will have to approve the loan. Document your budget to prove that you’re going to be able to make the payments. You also need to be prepared to answer questions about your need for the new item.
Before you file for bankruptcy, make sure you understand your rights. Some bill collectors will tell you that your debts can’t be bankrupted. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
Don’t let shame consume you during the bankruptcy process. Often, with bankruptcy, come feelings of guilt, shame and worthlessness. Feelings such as these are not of value to you and it is possible for them to be psychologically harmful. Keep a positive state of mind to deal with your tough financial situation.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. To avoid getting too stressed, make sure you hire a reputable bankruptcy attorney. Look beyond the fees a lawyer charges when you make your hiring decision. There is no need to use an expensive attorney. The important thing that you must do is to get a good attorney. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. Often, watching a bankruptcy proceeding can give you clues to the quality of a lawyer.
Bankruptcy will erase debts. Don’t create any new debts before filing for it. This could be considered as fraud, and you may even be forced in paying all of it back to credit card companies.
Judging from the information contained within the article alone, you can now see that there are ways to get out from under the piling debt. Afterward, however, you can have an easier time. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.
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