Get Through Your Bankruptcy With These Tips
Posted at by PConran on category BankruptcyMost people never expect to be in the position of facing bankruptcy. Changing circumstances often creates a situation in which there’s no better choice, therefore, knowing how to properly deal with it the right way is important. If you are approaching a bankruptcy situation, reviewing the advice presented below may help you understand what happens next.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Your attorney and trustee should be privy to all information about your finances. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Investigate any new laws before deciding to file a bankruptcy. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To learn about any changes, search the Internet or contact your state’s legislative office.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. If your debt is relatively low, you may be able to manage it with credit counseling. It is also possible to do your own debt negotiations; however, be sure to get everything in writing.
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. The Chapter 7 variety can help you eliminate your debts almost entirely. Your former ties with creditors will cease to exist. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Take steps to ensure your home is protected. Bankruptcy doesn’t always mean you’ll lose your home. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. You may also want to check out the homestead exemption because it may allow you to keep your home.
Learn what you can about Chapter 13 bankruptcies. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Before ultimately deciding whether or not to file for bankruptcy, be sure to weigh the different options available to you. There are many other options including debt consolidation and making payment plans with your creditors. Loan modification plans on home loans are a great example of this. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. Ultimately, creditors want their money, and many times repayment plans are preferable to a debtor that is bankrupt.
Make sure you understand your rights as you file for bankruptcy. Collectors may try to convince you that your debt can’t be discharged. Only a few kinds of debt, like student loans or child support, are ineligible for bankruptcy. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
If you have found yourself facing bankruptcy, it is crucial that you get good advice on what to do next. The process is anything but simple, and information will become your best friend during this difficult time. The above article has provided a lot of this knowledge so that you’re able to deal with your finances with less stress.