Making An Informed Decision When Thinking About Bankruptcy
Posted at by PConran on category BankruptcyDealing with bankruptcy is very tough. Your financial options become very limited. However, do not give in to despair. There is a way to get your financial difficulties under control and this article will show you how to get started.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
Think through your decision to file for bankruptcy carefully before going ahead with it. There are other options available, such as credit counseling for consumers. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. You should not use your retirement savings unless the situation calls for it. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
Make sure you keep reminding your attorney about any important details in your case. It is wrong to assume that your lawyer will remember every word you ever utter! Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Only make your decision if all your questions and concerns are adequately addressed. You do not have to give them your decision right after the consultation. You could even go to different lawyers for advice.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Be sure you go on the Internet and do your research to see what’s best for you. 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.
Consider Chapter 13 bankruptcy for your filing. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Missing a payment under these plans can result in total dismissal by the courts.
It is possible to obtain new vehicle and home loans while a Chapter 13 case remains active. There are extra hoops to jump through. You need to speak with your trustee so that you can be approved for a new loan. You need to show them why and how you can handle paying back the new loan. You will also need to have a good reason why you need the item.
Even if you go bankrupt, you do not need to be limited forever. Lenders will look more favorably upon you if you show them that you are trying to save money and make whatever payments you can. Make an effort to keep your debts under control, and try for another loan when the time is right.