Solid Advice You Can Use To Help With Bankruptcy
Posted at by PConran on category BankruptcyWhile bankruptcy is often a last-resort measure, sometimes it’s simply unavoidable. Bankruptcy can have a major effect on credit; but, at times, is the only choice. The following article will provide some basic information about filing for bankruptcy and its possible consequences.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. Without reading the list, you may be shocked at which possessions can be taken from you.
Don’t hide assets or liabilities when filing for bankruptcy. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Don’t withhold information, and create a smart way of coping with the reality of the situation.
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. Every one of your debts will be gone if you decide to go with Chapter 7. The ties with the creditor will be broken. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Always protect your house. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Consider filing a Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. When you file a Chapter 7, your debts will be dissolved. Your creditors can then come after your co-debtor for full repayment of the debt.
Don’t wait until the last minute to file bankruptcy. It is a mistake to ignore your financial troubles, hoping they will go away on their own. It is very common for personal debts to snowball suddenly. When this happens, terrible consequences, such as wage garnishment and foreclosure result. Speak with a bankruptcy lawyer as soon as you become aware that you cannot handle your debts.
Make a comprehensive list of all of your financial information before you file for bankruptcy. Leaving out information either purposely or by mistake can prolong your petition, or have it dismissed completely. Add every summer, no matter how insignificant, to your documentation. This might take the form of odd jobs, extra cars and outstanding personal loans.
As you can see by now, you do have the option of filing bankruptcy. But, you need to look at all of your options rather than jumping into bankruptcy head first. Bankruptcy has negative ramifications that can effect you for awhile. The best way for someone to avoid financial stress and hold onto their possessions is by learning more about bankruptcy.