Bankruptcy And You – Important Things You Need To Know
Posted at by PConran on category BankruptcyThe specter of bankruptcy can cause many individuals to break out in a cold sweat. Mounting debt, combined with insufficient support for the family, is a horrible experience for a large number of people. If it frightens you, or you live this way, the information in this article will be useful for you.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have other options available like consumer credit counselling services. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. If you are in this situation, applying for a secured card may be the answer. This demonstrates to creditors that you are making a good faith effort to repair your credit. In time, you might be granted unsecured credit again.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Don’t give up. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Consult with a lawyer who can help you along with filing the petition.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Choose to file only if your lawyer has convinced you that this is the best decision. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. You have lots of time for consulting with other lawyers.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. An attorney specializing in personal bankruptcies can assist and make certain things are being handled correctly.
Learn what you can about Chapter 13 bankruptcies. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. However, if you were to miss a payment, the court would dismiss your case right away.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. If you are about to lose your house, talk to your lender about a loan modification. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
Many people are frightened by bankruptcy, and for good reason. Filing for bankruptcy can be a very stressful and fearful experience, especially if you don’t know what you’re doing. That said, the best antidote to fear is information, and this article has given you that in spades. Apply what you’ve learned here, and get a fresh start for you and your family.