Keeping Your Head Above Water When Bankruptcy Is The Option
Posted at by PConran on category BankruptcyYou shouldn’t decide to file for bankruptcy on a whim; the choice can be life changing. Read through the information in this article and use it to help you make an informed decision. Doing as much research as possible is important.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. Many sites, including the U.S. Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more knowledge you have, the more you are able to make right decisions and find a new future.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Learn the newest bankruptcy laws before filing. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
Protect your house. Filing for bankruptcy will not always result in losing your home. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Learn the benefits and drawbacks of each type before deciding which is right for you. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Filing for bankruptcy is not recommended when you have income more than your debts. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Filing for bankruptcy should not be done on a whim. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. Loan modification plans on home loans are a great example of this. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. However, there are steps which must be taken to ensure you are within the law of bankruptcy. You will have to get this loan approved by your trustee. You will need to make a budget and prove that you will be able to afford your new loan payments. They may also want to know why you believe you need the loan.
Bankruptcy is not a chance happening in anyone’s life. Many steps have to be taken, and all of them must be performed properly. By following the above advice, you will make fewer mistakes and find yourself better prepared.