If you are facing the repossession of valuables, such as cars or jewelry, you may be feeling some fear. Put a stop to harassment by creditors and blaze a trail to a new financial future by declaring bankruptcy. Keep reading for tips that will help you navigate the process successfully.
Once a person’s debts outstrip his or her ability to repay them, bankruptcy may be the only option left. If this is your case, you should do some research about bankruptcy laws in your state. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
United States
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. 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.
Ask yourself if filing for bankruptcy is truly your best option. You have other options available like consumer credit counselling services. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
When you realize that you probably will file for bankruptcy, do not pay your creditors or try to avoid bankruptcy by spending all of your regular or retirement savings. Unless there is no other choice a retirement account should not be used. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Whoever provides your legal consultation must be privy to all of your financial information. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
If you’re going to file bankruptcy, you need an attorney. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. An attorney will make sure that everything is being done correctly.
Chapter 7
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. Chapter 7 eliminates all 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. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Chapter 13 Bankruptcy
Learn what you can about Chapter 13 bankruptcies. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Just know that missing one payment could cause your case to be dismissed.
If you are in the midst of a Chapter 13 bankruptcy, it is possible to apply for certain loans. This is a lot harder. Your bankruptcy custodian will need to approve the loan. Create a budget and prove that you will be able to afford it. Also, be sure you can provide an explanation as to why this purchase is necessary.
Take action when the time is right. When it comes to filing for personal bankruptcy, timing is vital. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. The bankruptcy process can make many people feel ashamed, guilty and unworthy. These are useless emotions, however, and can be harmful to your mental state. Staying positive and upbeat is the proper way to deal with bankruptcy.
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. It’s hard to admit you need assistance, but the longer you decide to wait, the worse the debt can get. By consulting a professional, you will be able to get the advice that you need before everything gets too complicated.
Regardless of how terrible your situation is, when you choose to file for bankruptcy, always be honest. Lying about assets, debt or income can have damaging effects on your future. This is illegal. If you withhold information about these things, you risk spending time in prison!
Bankruptcy is an option, but you should look at other options before filing. You must remember that some debt consolidation services really are just a scam, and using them will result in even more debt for you. Remember the tips in this article so you can make the best financial choices and avoid future debt.
This is a limited-time offer. We are not able to guarantee availability if you wait!
