Why Personal Bankruptcy Can Work For Some And Not Others

Feeling sad and frustrated are a couple of the many emotions people feel when going through bankruptcy. Do not let your emotions get the best of you, you can clear up your life and stop worrying as much. As you will soon learn, there is a way out.

It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Different states have different laws regarding bankruptcy. For instance, some states protect you from losing your home in a bankruptcy, but others do not. Do not file before learning about the bankruptcy laws in your state.

Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.

Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.

Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. You need to read the exemptions for your state, so you know what property you can protect. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.

If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Telling the truth will allow you reach a solution that is feasible, given your current situation.

Do not give up hope. Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Get help from your lawyer to file a petition so you can get your items back.

Be sure to hire an attorney before you embark upon filing for personal bankruptcy. With all the ins and outs of bankruptcies, it can be hard to grasp all the knowledge. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.

Think carefully about your different options before filing for bankruptcy. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.

Chapter 7

Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 involves the elimination of all of your debt. Any ties that you have with creditors will be dissolved. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. 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.

Protect your house. You don’t have to lose your home just because you are filing for bankruptcy. You can still keep your home, it just depends on your specific situation and the value of your home. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.

After reading this article, you should be able to see that personal bankruptcy isn’t so bad. While filing for bankruptcy is initially an emotional downer, things will improve. Making use of the tips you found here will allow you to heal your financial situation.