Why You Can File For Bankruptcy And Get Out Of Financial Trouble
Posted at by PConran on category BankruptcyHaving to file for personal bankruptcy is never a positive experience. A lot of people feel ashamed and embarrassed about filing for bankruptcy and do not want to deal with their situation. Use the article that follows as a way to learn about all of your options.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. The ties with the creditor will be broken. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. Look into both types of bankruptcy before deciding which one would suit your particular needs.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Look into filing Chapter 13 bankruptcy. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. 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. Remember that missing a payment to the plan will result in your case being dismissed.
Filing for bankruptcy should not be done on a whim. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. Loan modification plans can help if you are dealing with foreclosure. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.
You may want to see if you can get lower payments on your vehicle if you want to keep it. A lot of the time you can lower payments by filing for Chapter 7 bankruptcy. It is necessary for you to have bought your car prior to the 910 days preceding your filing, your loan must carry a high rate of interest and you must be employed in order to get such a modification, however.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. There will, however, be obstacles. Your trustee must approve any new loans. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. It will also be necessary to show why a new purchase needs to be made.
As you can now see, you do not have to let bankruptcy consume your soul. By using this article you will be well on your way to avoiding bankruptcy. Begin today with what you learned here and soon you will see positive changes in your financial situation, so you can avoid the harmful process of filing for bankruptcy.