Tips For Chapter 13 And Chapter 7 Bankruptcy And Property
Posted at by PConran on category BankruptcyYou’ve heard it before and you’ll hear it again–the economy is in rough shape. The difficult economic circumstances have caused increasing levels of unemployment and personal debt. Debts can often lead to bankruptcy, an outcome nobody ever wants. This article will help you to understand how to handle tough situations such as bankruptcy.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Protect your home. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. There are mitigating factors, such as lose of value, or multiple mortgages. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Be sure that bankruptcy really is your best option. Consider whether debt consolidation may be a more viable alternative. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. You will have trouble getting credit down the line. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Remember to spend some quality time with your loved ones. The whole process of filing for bankruptcy is hard. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. Most people adopt a very negative attitude toward bankruptcy. Isolating yourself from your loved ones can lead to feelings of depression. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
If your vehicle is in question, perhaps your attorney can assist in lowering your payments. Many times, payments can be lowered through Chapter 7 bankruptcy. The car loan must have been initiated prior to 910 days before your petition. It must carry a loan with high interest. You should also have a steady history of work.
Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. However, creditors can demand co-debtors pay the amount in full.
A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn’t refrain from trying. It’s a bit more difficult, though. Your trustee can help you acquire a new loan. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. It will also be necessary to show why a new purchase needs to be made.
The economy is rebounding slowly, but there are still people who can’t find employment that pays a living wage. That said, it is possible to avoid bankruptcy even if you are having cash flow problems. Hopefully you have figured out some ways to avoid bankruptcy for you or someone you know. Let the force be with you.