Maybe Bankruptcy Is Not The Right Option For You?
Posted at by PConran on category BankruptcyBankruptcy is a tough decision, one that should be given a lot of thought. You can prepare yourself for the tasks ahead by checking out the information and advice that this article has to offer you. It’s important that you gather as much info as possible before filing.
Safeguard your most valuable asset–your home. Bankruptcy filings do not necessarily mean that you have to lose your house. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
If you make more money than what you owe, filing for bankruptcy is not a good option. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. When filing Chapter 7, you are not legally responsible for the debts in your name. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.
You can still take out a car loan or mortgage while you are in Chapter 13 bankruptcy. This is harder. First, your trustee will have to approve the loan. It is important to make a budget and prove that you are able to afford the payment. Also, be sure you can provide an explanation as to why this purchase is necessary.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. Some debt collectors like to say that you cannot file for bankruptcy on these debts. You should know that only a few debts cannot be erased, including student loans and child support. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. Often, with bankruptcy, come feelings of guilt, shame and worthlessness. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Bankruptcy can be overwhelming to most people, and can be quite stressful. Be certain that you hire a competent lawyer to minimize the stress and anxiety you are under. Look beyond the fees a lawyer charges when you make your hiring decision. Your attorney does not need to cost a lot, but they do need to have a lot of experience. Rely on word-of-mouth referrals from others who have filed for bankruptcy, check the BBB, and take advantage of free consultation offers. Often, watching a bankruptcy proceeding can give you clues to the quality of a lawyer.
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. Yes, it is hard to admit that you need help; however, the longer you wait the deeper in debt you get. By talking to a professional, as soon as possible, they can give you some advice on things you can do before it all gets too complicated.
Know that bankruptcy can be much better for your finances than missing payments or making late payments on debts. Yes, the bankruptcy will stick around for a whole ten years, but the clean slate you get from filing will help you get back on the right track quickly. One of the best benefits to bankruptcy is the promise of a fresh start.
As you are aware from the previous paragraphs, bankruptcy is not something that just happens. Many issues need to be handled the right way. By using the above suggestions, you will be sure that all your Ts are crossed and all your Is are dotted when it comes to filing for bankruptcy.