Need A Fresh Start? Read These Tips Now!
Posted at by PConran on category BankruptcyA lot of people are in debt right now. Creditors and bill collectors hound them and there is no slow down in their bills. You may have found yourself in the same situation, and you should know that bankruptcy could be a good option for you. Go over the tips presented in this article to figure out if bankruptcy is the best solution.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If this is your case, you should do some research about bankruptcy laws in your state. You will find that each state has their own bankruptcy laws. Some states may protect you home, and some may not. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
The best way to build your credit up after a bankruptcy is making all your payments on time. If this happens to you, think about applying for a couple of secured credit cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. Unsecured credit may be offered to you quicker than you think after doing so.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Learn of new laws prior to deciding to file for bankruptcy. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Under Chapter 7 type bankruptcy, all debts are forgiven. Any ties you have concerning creditors will definitely be dissolved. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. You must know about the different bankruptcy types, and how each can affect you.
Look into filing Chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
Make time to visit with family and friends during the bankruptcy process. Bankruptcy can really wear down your emotional reserves. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Some people do not even want to speak with others until the bankruptcy is official. However, you will only feel worse about what has happened, which may lead you into depression. It’s crucial to spend time with loved ones despite your present financial situation.
Talk with your lawyer about getting lower payments for any car you wish to keep. Many times, payments can be lowered through Chapter 7 bankruptcy. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.
Before declaring bankruptcy, it is important to know your rights. Some debt collectors like to say that you cannot file for bankruptcy on these debts. What you can’t file on is very small, like student loans or child support payments. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
As you can now see, there is much information available that can help you through your bankruptcy. Don’t let the situation overwhelm you. Look at bankruptcy as a way to begin again.