Bankruptcy And You – Important Things You Need To Know
Posted at by PConran on category BankruptcyThe economy is in very bad shape right now. When the economy is bad, people lose their jobs and that means debt begins to pile up. For a lot of people, filing for bankruptcy is the only logical solution. If you would like to know how to get yourself or your friend out of filing for bankruptcy, read on for some possible answers.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. You have other options available like consumer credit counselling services. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
Always be honest with the information you give about your finances. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If you find that to be the situation, consider requesting secured cards. This will prove that you want to improve your credit score. After a certain time, you will then be able to acquire credit cards that are unsecured.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Before filing for bankruptcy, hire a qualified attorney. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
Seek a less serious option prior to filing for bankruptcy. For example, if your debt is small, try a type of consumer counseling program. You may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Spend time researching the advantages and disadvantages of filing for each one of these. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. With a consistent income source and less than $250k in debt, try filing for Chapter 13. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Remember that missing a payment to the plan will result in your case being dismissed.
An understanding of your rights is important before filing for bankruptcy. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
The economy is rebounding slowly, but there are still people who can’t find employment that pays a living wage. Even if you do not have a steady income, there are steps you can take to prevent bankruptcy. Hopefully, after reading this article, you picked up on a few of the things that will help you avoid filing for bankruptcy. May good fortune be with you.