Having Financial Issues? Have You Considered Bankruptcy?
Posted at by PConran on category BankruptcyDeciding to file for bankruptcy is serious and should be looked at seriously. Doing your research, partially by reading articles like this one, is an important first step in filing for bankruptcy. It’s important that you gather as much info as possible before filing.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. Penalties may include fines, imprisonment or denial of the filing. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. The topic of bankruptcy is a complicated one and it is important that you know all about it. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 eliminates all debts. The ties with the creditor will be broken. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. Both options have advantages and drawbacks, so do your research before deciding.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Talk to the lawyer and not his assistant, who may not be legally able to help you. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Consider Chapter 13 bankruptcy for your filing. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Expect to make payments for up to 5 years before your unsecured debts are discharged. However, if you were to miss a payment, the court would dismiss your case right away.
Spending time with the people you love is something you should do now. Going through bankruptcy is difficult. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Lots of people decide they should hide from everyone else until it is all over. However, you will only feel worse about what has happened, which may lead you into depression. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. A plan that can be useful when foreclosure is looming is 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. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
As is evident from the information you just read, the bankruptcy process takes time. Many steps have to be taken, and all of them must be performed properly. Hopefully, with what you learned today, you learned what it means to file for bankruptcy and you can avoid being in this situation in the future.