Bankruptcy: What To Consider When Filing
Posted at by PConran on category BankruptcyBankruptcy definitely causes short-term stress, but if you’re responsible, it can be a relief in the long term. On the one hand, you have to go through all your finances and deal with many people going through your financial life. By contrast, once your bankruptcy is complete, you will have the freedom to rebuild your credit without being hounded by debt collectors. The following article will give you advice to make filing for bankruptcy simpler.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. Study the laws in you state to learn what you need to do and what your options are. Every state has a separate law having to do with bankruptcy. You may find your home is safeguarded in one state, while in another it isn’t. It is important to understand the laws in your state before filing for bankruptcy.
Consider all options before deciding to file for personal bankruptcy. Other available options include consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Never lie about anything in your bankruptcy petition. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If you find that to be the situation, consider requesting secured cards. This will demonstrate that you’re seriously trying to restore your credit. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. All creditor relationships will be severed. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
There are many different reasons why people choose to file for bankruptcy. No matter what your reason may be for going through with it, you need to know as much as possible about it before you begin. The information you just read will greatly simplify the bankruptcy filing process. Use these tips and you’ll see how they make you feel better about dealing with the processs.