Easing Your Financial Woes With Personal Bankruptcy
Posted at by PConran on category BankruptcyIn the short term, bankruptcy is a negative experience. The need to file for bankruptcy is usually the result of misfortune. The process can be embarrassing and can cause a person to feel secretive when it comes to finance. You do not necessarily need to file for bankruptcy, there are other options to help you resolve your debt. This article will help you improve your financial situation.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this sounds familiar, you should read up on the bankruptcy laws in your state. Different states have different laws regarding bankruptcy. Your home and other major assets may be protected in your state, while they are vulnerable in other states. You should be familiar with the laws for your state before filing for bankruptcy.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. All information submitted to the court with your signature needs to be double checked.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
Never give up. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Consult with a lawyer who is able to assist you in the filing of your petition.
Stay up to date with any new bankruptcy filing laws. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Consider Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. Expect to make payments for up to 5 years before your unsecured debts are discharged. Just know that missing one payment could cause your case to be dismissed.
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. There are many other options including debt consolidation and making payment plans with your creditors. You can apply for a modification of your mortgage if your home is going into foreclosure. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
Think about any co-debtors you have prior to filing for Chapter 7 bankruptcy. When you file a Chapter 7, your debts will be dissolved. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
Bankruptcy is something you file for after considering all your other options. You can use what you know to find the road to return from the brink of bankruptcy. Apply what you’ve learned here to make changes in your life that will not hurt your credit.