Why Personal Bankruptcy Can Work For Some And Not Others
Posted at by PConran on category BankruptcyIf you have accumulated a lot of debt and are about to file for bankruptcy, let go of your worries. There is a lot of information online that can help you avoid bankruptcy. Continue on for some excellent tips that will help you avoid filing for bankruptcy.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Be sure you’re doing what’s right before you file for bankruptcy. You have better options. For example, you could try credit counseling. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. The person you choose to file with needs to know both the good and bad aspects of your finances. Put everything out on the table and craft a wise plan for handling the situation the best you can.
See if there is an alternative you can use before declaring bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. You will be removed from any contracts you have with your creditors. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Be sure your home is well protected. Filing for bankruptcy does not mean you have to lose your home. There are mitigating factors, such as lose of value, or multiple mortgages. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Don’t be tempted to race toward a bankruptcy without taking time to make sure it is the right thing for you to do. You may well be able to regain control over your debts by consolidating them. Going through the bankruptcy process is a long drawn process which at times can be incredibly stressful. It will also harm your ability to secure credit in years to come. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Take some time after filing for bankruptcy to enjoy life. Many people who undergo this process become way too stressed out. This stress may lead to something worse like depression, so do what you can to fight that from happening. Life will get better; you just need to make it through the bankruptcy process.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. Chapter 7 usually can help payments be lowered. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
Proper planning can put you in the right place. If you can buy yourself, time then do it; the more the better. The most important thing here is that you understand that knowledge is power in filing a claim. Start to plan things out on how your future will be.