Bankruptcy: Is It The Right Answer For You?
Posted at by PConran on category BankruptcyFrustration, sadness, anguish and anger are feelings that are felt by anyone who experiences personal bankruptcy. Those who find the need to file often worry about how they will be able to pay debts and live their daily life. Even if you file for bankruptcy you still have options available to you. Read on to learn more.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this sounds like you, start familiarizing yourself with your state laws. Different states have different laws regarding bankruptcy. For example, the personal home is exempt from being touched in some states, but not in others. Know what the laws are in your state before filing.
Before undertaking the bankruptcy process, ensure you have made the correct decision. You have better options. For example, you could try credit counseling. Bankruptcy can leave your credit history permanently marked. Prior to doing this you need to be sure you try everything else first to get your credit history into shape and to lessen the impact.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Don’t just assume they already know and that they have these important details committed to memory or written down. Speak up if something is troubling you, as this is your future we are talking about here.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. Without reading the list, you may be shocked at which possessions can be taken from you.
Weigh all of your options before declaring bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. 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.
Consider Chapter 13 bankruptcy for your filing. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. 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.
Be around family as much as possible. The process for bankruptcy can be brutal. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. A lot of folks decide to hide themselves from the world around them until the end of the process. On the other hand, isolation of a self-imposed nature can only worsen your feelings, opening the door to mental depression to join your financial depression. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
If your income exceeds your obligations, you should not seek bankruptcy protection. Bankruptcy might seem like a good way to get out of paying your bills, but it will devastate your credit for the next ten years.
Once the initial filing period is over, ensure that you are getting out and enjoying life. The process of filing for bankruptcy can make people a nervous wreck. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
Now that you’ve reached the end of this article, you should see that bankruptcy doesn’t mean leading an unhappy life. While filing for bankruptcy is initially an emotional downer, things will improve. Using these tips will allow you to get through this process with ease.