Things To Think About When Considering Bankruptcy

Posted at by PConran on category Bankruptcy

Filing for bankruptcy is always a bad thing. Bankruptcy can be a bad sign and can be embarrassing to tell others about in regards to your financial status. This article can help you deal with bankruptcy in the best way possible.

When people owe more than what can pay, they have the option of filing for bankruptcy. If you find yourself going through this, you should know all about the laws that are in your state. Every state has a separate law having to do with bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Know what the laws are in your state before filing.

Think through your decision to file for bankruptcy carefully before going ahead with it. Other available options include consumer credit counseling. 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.

After a bankruptcy, you may still see problems getting any kind of unsecured credit. Look into getting a secured credit card in order to get back on your feet with building credit. That will show lenders that you are committed to rebuilding your credit. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.

Do some research to find out which assets you could lose by filing for personal bankruptcy. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.

It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Comparing different lawyers makes it possible to find one with whom you work well.

Before filing a bankruptcy claim, make sure that your home is well protected. Bankruptcy filings don’t necessarily have to end in the loss of your home. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.

Consider filing for Chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved 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. Just know that missing one payment could cause your case to be dismissed.

You see, you don’t have to give in to bankruptcy. By following the tips presented here, you can avoid filing for personal bankruptcy. Start using what you learned today and see how much of a change you can make in your life, so that you do not have to harm your credit history.



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