Should You Make The Step To Personal Bankruptcy?
Posted at by PConran on category BankruptcyYou should never take the decision to claim personal bankruptcy lightly. It is crucial you educate yourself on the entire bankruptcy filing process. The information below can guide you. You can always have an easier and better time navigating the treacherous waters ahead of you with the right research.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. 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.
Getting unsecured credit post-bankruptcy will likely be difficult. If that is the case, you should try applying for one, or two secured cards. You can exhibit your desire to rebuild your credit this way. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
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. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Hire a lawyer if you plan on filing for bankruptcy. You might not understand all of the various aspects to filing for bankruptcy. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. All debt will be eliminated with Chapter 7. Any ties you have concerning creditors will definitely be dissolved. In a Chapter 13, though, you’ll be put on a payment plan for up to 60 months before being free of your debts. It is vital that you know the differences between these types of bankruptcies, in order to find the option that’s best for you.
You can take steps to hang onto your house. Filing for bankruptcy does not mean you have to lose your home. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. Check to see if you pass the requirements necessary to file for a homestead exemption.
It is imperative that you know for sure that bankruptcy is the option you need. Sometimes consolidating your existing debts can make them more manageable. There is not easy process associated with personal bankruptcy. It will have a major effect on your credit as time goes on. Thus, you must make certain that bankruptcy really is the only viable solution to your problems.
As you’ve seen from this article, there is more than one way to go about filing for personal bankruptcy. Avoid being overwhelmed by too much information. Take the time you need to think clearly and analyze the information. You will make better decisions by doing this.