Information Everyone Should Know If They File For Bankruptcy
Posted at by PConran on category BankruptcyYou may feel quite frightened of the IRS if they threaten to repossess the things that are important to you, such as your jewelry or your car. Cease debt collector calls, then figure out your financial situation by thinking about personal bankruptcy. Find out what you need to know before filing bankruptcy.
After a bankruptcy, you may not be able to receive any credit cards. If this happens, instead you should turn your attention to secured credit cards. This will allow you to start building a good credit history while minimizing the bank’s risk. After a while, you may be able to get unsecured credit again.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
It is important to understand your rights when filing bankruptcy. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Talk to your lawyer to find out how to go about properly filing a petition.
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. You will no longer be liable for any money that you owe to your creditors. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. Both options have advantages and drawbacks, so do your research before deciding.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Weigh all the information you can find on- and off-line to make an educated decision. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Consider if Chapter 13 bankruptcy is an option. 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. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Look into all of your options before you choose to file for bankruptcy. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. Look into loan modification plans if you need to deal with an imminent foreclosure. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.
Although personal bankruptcy is always an option, do not pursue this before looking into other avenues. Also remember that many debt consolidation services are a scam that will get you even deeper into debt. Keep the advice from this article in mind in order to make ideal financial decisions and stay away from debt.