Read This Information Before Filing For Bankruptcy
Posted at by PConran on category BankruptcyBeing in debt can be extremely stressful. It seems as if one little debt somehow ballooned into catastrophic debt. When you find yourself in that position, it is not so simple to repair. Continue reading to learn great advice to help you understand what you need to know about bankruptcy and debt.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If this describes your situation, it makes sense to become familiar with relevant laws. Bankruptcy laws vary from state to state so it is important to do your research. Some states may protect you home, and some may not. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. There are plenty of other options open to you, like consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. You should make every effort to leave your retirement accounts untouched until your retire. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
No matter what, don’t give up! You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Consult with a lawyer that can walk you through the filing process.
Consider other alternatives before filing for bankruptcy. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Consider filing a Chapter 13 bankruptcy. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
There are often times when you feel that you have very little control over what is happening to you. The article above has some powerful suggestions to get things back in control and manage the issues you face when filling for bankruptcy. Use the advice that you have been given to make some changes in your life.