Filing for bankruptcy is not a simple process. There is more than one type of personal bankruptcy, and your personal financial situation will dictate which type you should choose. The most important step you can take, of course, is to learn what you can about the process before ultimately deciding one way or the other. The following tips will help you understand bankruptcy.
Most people end up filing for personal bankruptcy because they owe more than they make. If this describes your situation, it makes sense to become familiar with relevant laws. Bankruptcy laws vary from state to state. Your home is safe in some states, but in others it’s not. Be aware of bankruptcy laws before filing your claim.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Debt advisors are one of the many other avenues you can consider. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
Unsecured Credit
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. Secured cards can be a great way to get started if this happens to you. This will show other people that you’re serious when it comes to having your credit record in order. Then, in time, it may be possible for you to obtain an unsecured credit card.
Keep with what you have decided to do. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Talk with an attorney who can guide you through the process of filing a petition.
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 attorney can help and guide you along through the bankruptcy process.
Stay up to date with any new bankruptcy filing 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. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Chapter 7
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. Your ties with all creditors will get dissolved. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Make time to visit with family and friends during the bankruptcy process. Filing for bankruptcy is a difficult process. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. It is not uncommon for a person to feel the need to pull away from loved ones during the process. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. Spend time with your family, talk about your problems and find things that relax you.
Once your bankruptcy filing is under way, take the time to decompress a little. Many debtors stress-out during the time of filing. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. Your life will most likely improve once you’re over this hump, so relax.
Talk with your lawyer about getting lower payments for any car you wish to keep. Filing under Chapter 7 is usually a good way to lower your payments. Here are the qualifications in regards to your vehicle: you must have bought it nine hundred and ten days or more before filing for personal bankruptcy; your loan must carry high interest; your work history must be steady and solid.
Bankruptcy is not a decision to be taken lightly. Once you have determined that filing for personal bankruptcy is the right choice for a you, engage an experienced and respected lawyer. With the help of a good lawyer, you can make your way through the process easily and secure in the knowledge that you are doing it right.
This is a limited-time offer. We are not able to guarantee availability if you wait!
