Bankruptcy And You: Tips For Recovery And Rebuilding Credit
Posted at by PConran on category BankruptcyBefore you file for bankruptcy, make sure you have considered all your options. Bankruptcy is often a dire sign in a person’s financial life, and can cause significant embarrassment and shame. If you decide to file bankruptcy, research the laws in your state and retain the services of a qualified attorney.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States DOJ, the NACBA, and the ABI all have useful information. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
Exhaust every other option before making the decision to file for personal bankruptcy. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The Bankruptcy Code has lists of various asset types that are exempt during the process. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you fail to do so, things could get ugly.
Investigate any new laws before deciding to file a bankruptcy. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To learn how the law has changed recently, go online and check your state’s website, or call the state government and ask them.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 most of your outstanding accounts will essentially be erased. Any ties you have concerning creditors will definitely be dissolved. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. Look into both types of bankruptcy before deciding which one would suit your particular needs.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. In many cases, Chapter 7 bankruptcy can lower your payments. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. But, it could be harder. You will have to get this loan approved by your trustee. Present a planned budget that shows how you can take on the loan payment and stay current. It will also be necessary to show why a new purchase needs to be made.
Find the right time to take action. Timing is everything, especially in personal bankruptcy filings. There are times when you should file as soon as you can, but in some other situations it may be best to wait for the worst to be over. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
As you can now see, you do not have to let bankruptcy consume your soul. The guidance from this piece can serve as a road map for steering clear of bankruptcy. Start using the information you learned from this article and make changes so you may not have to ruin your credit history.