Confused By Bankruptcy? These Tips Can Help!
Posted at by PConran on category BankruptcyYou should never take the decision to claim personal bankruptcy lightly. Before you file for personal bankruptcy, be sure that you understand all of the ramifications. The advice in this article will get you off to a good start. No matter what tough decisions you have to deal with, you can do it!
Millions of Americans file for bankruptcy each year because they can not pay their bills. When you are faced with this issue, begin to familiarize yourself with your state’s laws. Each state has their own bankruptcy laws. In some states, your home is protected, while in others it is not. Become acquainted with local bankruptcy laws before filing.
Always be honest and forthright when it comes to your bankruptcy petition. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Before declaring bankruptcy, be sure you’ve weighed other options. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Safeguard your home. You don’t have to lose your home just because you are filing for bankruptcy. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
If you are earning enough to cover your bills, don’t file for bankruptcy. Though bankruptcy may appear to be a good way to escape your debts, it does affect your credit negatively for a fairly long time.
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. You can apply for a modification of your mortgage if your home is going into foreclosure. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. Many times creditors are happy to work with you to ensure that you will repay your loan.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. Of course, it’s difficult. Before you can take out a new loan, you will have to clear it with your trustee. In order to show that you’re capable of paying off your new loan, prepare a budget that includes its payments. You should also be prepared to explain why you need to purchase the item.
After reading this article, you will know how to file a claim bankruptcy. Don’t let the amount of information overwhelm you! Take some time to think about the tips you have read here and how they apply to your situation. Doing this will allow all the information to be processed and benefit your decision making going forward.