Complex Bankruptcy Information In Simplistic Terms
Posted at by PConran on category BankruptcyThere are few people who expect to file bankruptcy. Sometimes there is simply no viable alternative in a given financial situation. This is when it’s important to understand the basics of bankruptcy. If that happens to you, you can use the information laid out in this article.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The US Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. Look into getting a secured credit card in order to get back on your feet with building credit. This will show people that you are serious about getting your credit record back in order. Unsecured credit may be offered to you quicker than you think after doing so.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Do not give up hope. 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. There is a chance that you can get back your property if it has been less than ninety days since repossession. Get help from your lawyer to file a petition so you can get your items back.
Before declaring bankruptcy, ensure that all other options have been considered. Those with smaller debts may find use in a program for consumer credit counseling. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Safeguard your home. You don’t have to lose your home just because you are filing for bankruptcy. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. Loan modification plans can help if you are dealing with foreclosure. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. Many times creditors are happy to work with you to ensure that you will repay your loan.
Speak with your attorney about ways you can keep your car. You can often lower your payment using Chapter 7 bankruptcy. There are qualifications, such as the loan being high interest and a good work record for this option.
Once you determine that claiming personal bankruptcy is something that you must do, you will need all the advice that you can get. Your process will be much simpler if you have a large knowledge base. With the tips from this article, you should be well-prepared to handle anything bankruptcy related.