Information You Must Know Before Filing For Bankruptcy
Posted at by PConran on category BankruptcyDeciding to file a bankruptcy petition is quite significant and should be done carefully and deliberately. Read through the information in this article and use it to help you make an informed decision. Doing as much research as possible is important.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Each state has their own bankruptcy laws. You may find your home is safeguarded in one state, while in another it isn’t. It is important to understand the laws in your state before filing for bankruptcy.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you fail to do so, things could get ugly.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Most lawyers offer free consultations, so talk to a few before making your decision. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You need not decide right away. You can take your time and check out several attorneys before making your final selection.
Determine if bankruptcy is necessary. Many times a consolidation loan will ease your financial struggles. It is not a quick and easy process to file for bankruptcy. 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.
Research Chapter 13 bankruptcy, and see if it might be right for you. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Bankruptcy can be a good time to spend time with people you love. The process of bankruptcy can prove particularly brutal. It is long, hard and sometimes leaves people feeling guilty or ashamed. It is not uncommon for a person to feel the need to pull away from loved ones during the process. But, keeping to yourself is likely to cause even greater sadness and despair. Time spent with people who care about you can give you new perspective on your financial situation.
If your income exceeds your obligations, you should not seek bankruptcy protection. You should know that filing for bankruptcy will ruin your credit score for at least ten years and that improving your credit score will be expensive.
Bankruptcy isn’t simple and immediate. When you file for bankruptcy, things must be done the right way. If you apply this advice, you are certain to be prepared when bankruptcy rears its ugly head.