Before You File – Everything You Need To Know About Bankruptcy
Posted at by PConran on category BankruptcyCarrying too much debt is a problem a lot of people are dealing with now. They are harassed by collection agencies and creditors and cannot get their finances under control. Filing for bankruptcy might be the best option for you. Go over the tips presented in this article to figure out if bankruptcy is the best solution.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. All happenings with creditors will disappear. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. Take the time to learn more about these different options so you can make the best decision possible.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Do what you can to keep your home. Bankruptcy filings do not necessarily mean that you have to lose your house. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. It’s not uncommon to be overwhelmed by the filing process. You do not want to have to deal with depression in addition to your financial troubles, so you should take steps to keep yourself happy. While the process is tough, you are getting a chance to start over.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. A Chapter 7 bankruptcy will relieve you of your legal responsibility to pay any joint debts. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.
Prior to filing for bankruptcy, purge from your vocabulary the word “shame”. Going through the filing process often brings out the worst in people, causing them to feel a variety of negative emotions. Continuing to let yourself feel that way can damage your emotional health and does not benefit you in your endeavors to deal with your financial situation. To best deal with filing for bankruptcy, look for the positives in the situation.
Don’t take too long when trying to decide whether you want to file bankruptcy. It is difficult to admit that you are in over your head financially, but waiting will just make the problem worse. When you talk to someone professional in a timely manner, you will be able to get advice on what you can do prior to it getting too complicated.
Realize that bankruptcy may be better for you when it comes to your credit. Continuing to miss your payments can be really bad on your debt. It is true that a bankruptcy stays on your credit record for ten years, but you are freed to start improving your credit immediately. The best aspect of bankruptcy is the fact you can have a new start.
Write down everything that you owe. This is what you will use when you file for bankruptcy, so make sure every debt you owe is on the list. Obviously, you’re going to want to leave no stone unturned. Rummage through your files and records and receipts to come up with precise numbers. It can be difficult or even impossible to discharge your debts if you report them inaccurately; be sure that you double check your figures.
Clearly, it is possible for those thinking of filing for bankruptcy to get a great deal of assistance. If you take a rational, methodical approach, you’ll soon be experiencing the fresh start you’ve been waiting for.