Understanding What A Personal Bankruptcy Means For You
Posted at by PConran on category BankruptcyFiling personal bankruptcy is a somewhat complex process. There are multiple ways you can file for bankruptcy, and the one that best fits you will depend on your financial situation and what you owe. You should learn all you can about bankruptcy before filing. This article has information that can help you.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. A great way to rebuild your credit is to apply for a prepaid credit card. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. After a time, you are going to be able to have unsecured credit cards too.
Find out what you exemptions are prior to filing bankruptcy. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. It’s crucial to read that list before filing to see which of your prized possessions can be seized. If you aren’t aware of this, you could lose some assets that you value.
Bankruptcy is tricky and hiring a good lawyer will be a must. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Consider Chapter 13 bankruptcy, if you chose to file. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Just know that missing one payment could cause your case to be dismissed.
Do not file for bankruptcy if your income is greater than your bills. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
Look at all of your options prior to deciding to file for bankruptcy. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. Loan modification can help you get out of foreclosure. The lender wants their money, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. Speak to an attorney or read the bankruptcy laws in your state to find out if certain loans can be excluded from your filing. However, the creditors could come after your co-signer and demand full payment for the debt.
You have probably realized that you should carefully evaluate your decision to file for bankruptcy before proceeding. If it’s the best course of action for your current financial situation, then be sure to find an attorney with a lot of experience with personal bankruptcy so that you may be able to have a better financial future.