Bankruptcy: What Are My Options And Limitations?Posted at by PConran on category Bankruptcy
Bankruptcy is a two-sided coin: relief/stress. It is embarrassing having people research into your finances and assets. On the other, however, after the bankruptcy has been discharged, you can get a fresh start and begin to re-build your credit. These tips can make bankruptcy much easier.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable 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.
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. Avoid touching your retirement accounts whenever possible. You may need to withdraw some funds from your savings account, but don’t take everything that is there as you will be bereft of any financial backup if you do.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Resisting the temptation to hide income or valuable assets from the bankruptcy trustee is a smart way to avoid potential complications, penalties, and the possibility of being barred from re-filing in the future.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. If that’s the case, it is beneficial to apply for one or even two secured cards. When you do this, it shows your determination to fix your credit history. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Don’t give up. There may still be way to get repossessed items back after you file for bankruptcy. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. This lasts for three to five years and after this, your unsecured debt will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
If you are making more money than you owe, bankruptcy should not even be an option. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
There are pros and cons to filing bankruptcy. Regardless of your reasons for filing for personal bankruptcy, remember that it is a process that can be extremely helpful if you are well informed. The tips laid out here will help you cope with bankruptcy in an easier manner. Use the tips presented here to help the process goes smoothly and more comfortably.