How You Can File Personal Bankruptcy
Posted at by PConran on category BankruptcyDrowning in debt can be overwhelming. It constantly builds, going from a molehill to a mountain in very little time. Once you realize you have to handle the problem, the real struggle begins. You might consider bankruptcy, look through this article and find out why.
If bankruptcy is an option for you, secure the services of an attorney. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Weigh all of your options before declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.
Find out more about Chapter 13. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. This lasts for three to five years and after this, your unsecured debt will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
If you make more money than you need to pay your bills, you should not file for personal bankruptcy. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. When filing Chapter 7, you are not legally responsible for the debts in your name. But, creditors will ask for the money from your co-debtor.
If you have filed for Chapter 13 bankruptcy, you will still be allowed to apply for and receive a mortgage or car loan. Of course, it’s difficult. You need to speak with your trustee so that you can be approved for a new loan. It is important to make a budget and prove that you are able to afford the payment. Be ready to justify the purchase that you need the loan for, too.
It is important to not wait for the final minute to petition for bankruptcy. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. Once you are aware that your financial situation is not manageable any more, your best bet is to speak with a bankruptcy attorney and find out what he or she recommends.
Be certain you are totally aware of the laws of bankruptcy before you file. For instance, for 365 days before filing, no one is able to receive assets from the filer. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
No matter how careful you are, major life changes can crop up that cause you to lose control of your finances no matter what you do. This article should have been instrumental in helping you figure out what to do next for your financial path. Use the advice that you have been given to make some changes in your life.