Shedding Light On The Steps For Bankruptcy
Posted at by PConran on category BankruptcyDeciding to file for bankruptcy is serious and should be looked at seriously. If you take a few moments to check out the different tips and tactics listed in the text below, you can begin to realize how to navigate your way through the tough mine field that is bankruptcy. Take the time to do learn everything you can before filing.
Always be honest with the information you give about your finances. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
You may still have trouble receiving any unsecured credit after a bankruptcy. If you find yourself in this situation, you may want to think about getting a secured card or two. That will show lenders that you are committed to rebuilding your credit. If you pay your secured card off on time, you’ll eventually find that companies will start offering you unsecured credit.
Don’t throw in the towel. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Consult with a lawyer who is able to assist you in the filing of your petition.
Brush up on the latest bankruptcy regulations before you decide whether or not to file. Laws are subject to change, and it’s important that you’re educating yourself about current code only. To know what these changes are, go to your state’s website or contact the legislative offices.
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. The Chapter 7 variety can help you eliminate your debts almost entirely. This includes creditors and your relationship with them will become no longer existent. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. Both options have advantages and drawbacks, so do your research before deciding.
Safeguard your home. You don’t have to lose your home just because you are filing for bankruptcy. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Take the time to find out about each one online, and look at the advantages and disadvantages of each. 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.
Consider filing a Chapter 13 bankruptcy. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best 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. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. If you are looking at foreclosure, think about a loan modification program. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
As is evident from the information you just read, the bankruptcy process takes time. When dealing with a claim, you literally cannot afford to skip steps or to get anything wrong. By using the tips in this article, you will be able to successfully file for bankruptcy and begin to rebuild your life.