Shedding Light On The Steps For Bankruptcy
Posted at by PConran on category BankruptcyIf you are faced with a repossession, the whole process can feel very intimidating. Put an end to the collection calls and come up with a plan that may involve filing for bankruptcy. Read on to see how to get through the process.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Always be honest and forthright when it comes to your bankruptcy petition. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
Safeguard your home. Filing for bankruptcy doesn’t automatically involve losing your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Thing about filing a Chapter 13 bankruptcy. With a consistent income source and less than $250k in debt, try filing for Chapter 13. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Don’t file bankruptcy if you can afford to pay your debts. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. It is a little more difficult, though. You will have to see your trustee and the approval for this new loan. Draft a personal budget to show that you will be able to repay your new loan. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
Always look into other options and make personal bankruptcy your last resort. Keep in mind that a number of debt consolidation services aren’t legit, and will only worsen your debt. Keep the advice from this article in mind in order to make ideal financial decisions and stay away from debt.