Understanding Why Bankruptcy Is Not The End Of The World
Posted at by PConran on category BankruptcyWhen you file for bankruptcy, it can not be described as a simple procedure. Bankruptcies come in different types; what you choose is subject to your financial situation and the kind of debts that you have. Prior to filing your petition, you really need to gain an understanding of how personal bankruptcies work. Check out the tips listed below if you want some solid info on the subject.
Most people end up filing for personal bankruptcy because they owe more than they make. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Each state has their own bankruptcy laws. Some states protect your home, and others do not. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Retirement accounts should never be accessed unless all other options have been exhausted. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
Once the bankruptcy is complete, you may find it difficult to receive unsecured credit. If so, apply for a secured credit card. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
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. 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.
When a bankruptcy is imminent, retain a lawyer immediately. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
You could see about filing for Chapter 13 personal bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. This lasts for three to five years and after this, your unsecured debt will be discharged. Keep in mind that missed payments will trigger dismissal of your case.
Obviously you see the necessity for proper planning and decision-making in before you file. If you feel that bankruptcy best suits your current financial position, then ensure you retain an experienced attorney who can help you.