Personal Bankruptcy: Tips For Starting Over With A Clean Slate
Posted at by PConran on category BankruptcyThe mere thought of bankruptcy is enough to strike fear into the hearts of people. Growing debt loads combined with continuous family obligations can cause an incredible financial strain. If it frightens you, or you live this way, the information in this article will be useful for you.
If you are considering filing for bankruptcy you definitely need to hire an attorney. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. Bankruptcy laws change a lot and before making the decision to file, you need to know what you are getting yourself into. To learn about any changes, search the Internet or contact your state’s legislative office.
Learn what you can about Chapter 13 bankruptcies. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. 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.
If you are making more money than you owe, bankruptcy should not even be an option. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. This is a lot harder. Your bankruptcy custodian will need to approve the loan. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. You will also need to explain why it is necessary for you to take out the loan.
Facing bankruptcy is not a fun situation and cause a lot of stress and anxiety. Be certain that you hire a competent lawyer to minimize the stress and anxiety you are under. Don’t let cost be the sole factor in who you hire. Quality is far more important than expense when it comes to a good bankruptcy attorney. Rely on word-of-mouth referrals from others who have filed for bankruptcy, check the BBB, and take advantage of free consultation offers. You might even go to a bankruptcy hearing to watch how a lawyer presents his case.
Don’t wait until it is too late to file for bankruptcy. For some people, they tend to ignore their poor financial situation and just wishing it away, but that is only putting you in more danger. If you have failed to make payments for several months but have continued making purchases on credit, your petition may be denied. You should call a good bankruptcy lawyer and ask for advice as soon as you find your debts have become completely unmanageable.
If you are planning to file bankruptcy, avoid taking large cash advances from credit cards thinking that the debt will be erased. Not only is this fraud, but you could still be liable to repay the money at the end of the day.
Think before you pay debts after you’ve decided to file. There are many laws when it comes to bankruptcy, including prohibition of paying some creditors 90 days before you file, as well as family for a whole year. Make sure you have a complete understanding of what is occurring prior to making any final decisions.
If you manage to get a new job right before filing for bankruptcy, still pay strict attention to your financial situation! It might still be wisest to file for bankruptcy. The time frame of your filing may be critical. If your filing is done before you earn a new income, you can calculate repayment means without taking that into account.
People fear bankruptcy with good reason. It is a pretty daunting process to go through. Now that you have read this article, you now never again have to be scared of bankruptcy. Make the most of these tips quickly. This will allow you to get back to a normal life with your loved ones.