Personal Bankruptcy Affecting Your Life? Try These Tips
Posted at by PConran on category BankruptcyMost people consider bankruptcy as a choice of losers, but quickly change their mind when it directly affects them. A change in circumstances, such as divorce or job loss, can make a situation where filing for personal bankruptcy is a necessity. Read this article to learn more about bankruptcy and find out if filing is the best option for you.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. You should always keep money saved for worse times. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.
Always remind your lawyer of specifics that are important to your case. Don’t just assume they already know and that they have these important details committed to memory or written down. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If that’s the case, it is beneficial to apply for one or even two secured cards. This will show people that you are serious about getting your credit record back in order. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Consider if Chapter 13 bankruptcy is an option. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. You can secure your home under Chapter 13 and pay your debts with a payment plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Look at all the alternatives to bankruptcy before filing. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. If you are about to lose your house, talk to your lender about a loan modification. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Make sure you consider implications of bankruptcy before filing for Chapter 7. If you choose Chapter 7, you are no longer responsible for joint debts. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
Don’t file for bankruptcy without knowing your rights. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. There are not many debts that can not be bankrupted, student loans and child support for example. If a collector uses this tactic about debt that can, in fact, be discharged through bankruptcy, report the collection agency to the attorney general’s office in your state.
Act when the time is right. When it comes to filing for personal bankruptcy, timing is everything. For some debtors, immediate filing is ideal, whereas in other cases, it is smart to hold off until a later time. Consult with an attorney who specializes in bankruptcy so you know when it is a good time to file.
Once you have tried every approach to your finances and still find no solution, you may find it necessary to consider bankruptcy. If changing circumstances have caused you to be in this position, you shouldn’t stress yourself out. When you read this article, you will find some very valuable information.