Sound Advice For Getting Through A Bankruptcy
Posted at by PConran on category BankruptcyWhen in a financial low, you make wonder if bankruptcy is the best choice. Do not despair, because there are other people in the same boat. Lots of people all over the world have used bankruptcy as a means to get themselves out of a troubled financial situation. The following article will provide you with some bankruptcy tips that you can use for guidance as you make your way through the process.
Before filling for bankruptcy, determine which assets will be exempted from seizure. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Consider Chapter 13 bankruptcy, if you chose to file. With a consistent income source and less than $250k in debt, try filing for Chapter 13. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. However, if you miss even one payment, the court will dismiss your entire case.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. You will be freed of responsibility for debts that you share if you make a successful Chapter 7 filing. However, creditors will want to hold your co-signer responsible completely.
Rest assured, when you file for Chapter 13 bankruptcy, you still have the ability to take out mortgage and car loans. However, it can be more difficult. You need to contact your trustee so you can get approved for a new loan. You will need to make a budget and prove that you will be able to afford your new loan payments. You’ll also need a valid reason for making the purchase.
Do not hesitate or stall when determining if filing for bankruptcy is the correct choice for your life and situation. It might seem a little scary, but if you wait forever to act, you’ll just be waiting that much longer once you do ultimately file. If you are not sure, gather all of your information and spend a little time speaking with a bankruptcy attorney; their experience can help you make the right decision.
You should keep in mind that in the long run, bankruptcy can have a more positive impact on your credit score than continually missing payments towards your debt. Your credit report will show your bankruptcy for the next ten years, but it will also allow you to start working towards repairing your credit immediately. A major benefit of the bankruptcy process is the ability to essentially start over.
As you can see, you are not alone in your need to fix your finances by choosing bankruptcy. Having read this article, you should feel better prepared to navigate this process. Use the information here to help see you through a smooth bankruptcy.