Surviving Your Bankruptcy: Helpful Tips And Advice
Posted at by PConran on category BankruptcyIt is not uncommon these days for people to be drowning in debt. The hate answering the phone because many debt collectors call daily, and every trip to the mailbox means another stressful bill. If you find yourself in these circumstances, you might want to think about filing for personal bankruptcy. The article below will help you figure out if bankruptcy is right for you.
Before undertaking the bankruptcy process, ensure you have made the correct decision. You have other options, including consumer credit counseling help. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
Don’t pay for an attorney consultation and ask him or her anything you want to know. It is a good idea to consult several attorney before deciding on one. Make your decision after all of your questions have been answered. You can think about your decision before making a commitment. This will give you extra time to interview several attorneys.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. All debt will be eliminated with Chapter 7. All happenings with creditors will disappear. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. Take the time to learn more about these different options so you can make the best decision possible.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Consider Chapter 13 bankruptcy. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. You can secure your home under Chapter 13 and pay your debts with a payment plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Keep in mind that missed payments will trigger dismissal of your case.
If you are making more money than you owe, bankruptcy should not even be an option. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Filing for bankruptcy should not be done on a whim. Before filing, talk with an attorney who can help you weigh all of your options. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. Creditors want their money. Often, they are willing to work out repayment plans with you in order to get it.
As you now know, you have plenty of assistance available for filing bankruptcy. If you open your mind to this process and think clearly, it can lead to better financial situation and leave you in a much better position than before.