Tips On How You Can Decide On Filing Personal Bankruptcy
Posted at by PConran on category BankruptcyThe economy is in very bad shape right now. A poor economy means more people than ever have debt and are losing their jobs. Too much debt leads to bankruptcy, which can be an extremely traumatic experience. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
Many people need to file for bankruptcy when they owe more money than they can pay off. If this describes your situation, it makes sense to become familiar with relevant laws. Laws differ from one state to the other. Your home and other major assets may be protected in your state, while they are vulnerable in other states. Be sure you educate yourself on local laws prior to filing.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. Avoid ever touching retirement funds until you have no other choice. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Your state’s legislative offices or website will have up-to-date information about these changes.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Look into filing 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. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. There will, however, be obstacles. Your trustee can help you acquire a new loan. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. Also, you need to be ready to say why you’re going to need the item.
File when the time is perfectly right. When it comes to filing for personal bankruptcy, timing is vital. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
If you plan to pay debts off before you file for bankruptcy, be careful. There are bankruptcy laws which forbid repayment of some creditors within three months before filing. In the case of family members, this period of time may extend to a full year. Before making any final decision concerning your finances, you should be educated on the rules of bankruptcy.
The economy is showing signs of recovery, but unemployment and underemployment are still high. If you don’t have steady income, you might still be able to avoid bankruptcy. Simply remain persistent and positive. Opportunities will eventually come your way. Keep these thoughts close and it will enable you to have a better chance of avoiding the need to file bankruptcy. I wish you the best of luck.