Personal Bankruptcy: Is It The Right Choice For You?
Posted at by PConran on category BankruptcyThe circumstances that culminate in a bankruptcy filing are likely unpleasant, though they do not need to define the rest of your life. Bankruptcy is all about giving you a fresh start. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. You should always keep money saved for worse times. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. Do not hesitate to speak up; this is your hearing and your future is on the line.
Keep with what you have decided to do. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Get help from your lawyer to file a petition so you can get your items back.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. The lawyer who properly answers your questions is the one you should hire. It is not necessary to make a final decision right away. Be sure to talk with a number of lawyers, and compare the information you receive.
Think carefully about your different options before filing for bankruptcy. You could find relief from small debts by using a consumer credit counselor. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Do what you can to keep your home. Filing for bankruptcy does not mean you have to lose your home. You can still keep your home, it just depends on your specific situation and the value of your home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Learn what you can about Chapter 13 bankruptcies. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.
As mentioned earlier, the events that drive anyone to declaring financial bankruptcy are not a happy story. Life after bankruptcy can be normal and happy. If you use these tips, you may be able to use bankruptcy to make your life better going forward.