Bankruptcy: Is It Right For You?
Posted at by PConran on category BankruptcyMaking the decision to file for bankruptcy isn’t an easy one, but sometimes it can be the only way out of a mountain of debt. Before filing for bankruptcy, it is important that you fully understand what it means and what is involved in the bankruptcy process. Keep reading to learn some valuable tips from someone who has stood in your shoes.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The United States DoJ along with other private and nonprofit organizations all have insightful knowledge. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Do not hesitate to speak up; this is your hearing and your future is on the line.
If you are about to file for bankruptcy, then make sure you hire a lawyer. You may not know everything you need to know in order to have a successful outcome of your case. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Learn the newest bankruptcy laws before filing. These laws change regularly and you should stay up-to-date so you can make the best decisions. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
It is important to protect your home when filing bankruptcy. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Learn the benefits and drawbacks of each type before deciding which is right for you. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Investigate your other alternatives before you decide you have to go with bankruptcy. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. Going through a bankruptcy is a long and stressful process. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. Thus, you must make certain that bankruptcy really is the only viable solution to your problems.
Look into filing Chapter 13 bankruptcy. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Find ways to relax while you go through the process of filing for bankruptcy. It can be several months between the initial filing and the final discharge of debts. Depression can ensue from the stress if action isn’t taken. You are getting a fresh start, and things will get better.
It is not something you want to do; however, bankruptcy is a necessity for many struggling with debt. After reading these tips, you can go through the process with some helpful tips. You will find that every journey in life goes more smoothly if you heed the advice of those who go before you, and this one is no different.