How To Protect Personal Property In A Bankruptcy
Posted at by PConran on category BankruptcyWhen someone files for bankruptcy, it’s not a good thing. Bankruptcy can be a bad sign and can be embarrassing to tell others about in regards to your financial status. So don’t give in to bankruptcy, use this article as your guide to figure out how.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. In Chapter 7 most of your outstanding accounts will essentially be erased. All happenings with creditors will disappear. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Do not forget to be around those you love. Bankruptcy can take a toll on you. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. Many people don’t feel like socializing during the ordeal. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. Thus, you must keep living your life and socializing with those you love, no matter what is going on with your bankruptcy.
Don’t file bankruptcy if you can afford to pay your debts. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. It can be several months between the initial filing and the final discharge of debts. This stress could morph into clinical depression, if you fail to adequately address the problem. Once the process is complete your life will improve.
Find out about lowering the cost of the payment you pay monthly on your car, if you are afraid of losing it. Sometimes, as part of the bankruptcy filing, your auto loan can be restructured so that you pay less each month. The car loan must have been initiated prior to 910 days before your petition. It must carry a loan with high interest. You should also have a steady history of work.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. Often, with bankruptcy, come feelings of guilt, shame and worthlessness. Learn to accept these feeling at face value– you can’t prevent yourself from feeling them, but you can stop them from controlling you. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Depending on your current financial situation, it may or may not be necessary for you to file for bankruptcy. The information contained in this article can help you to avoid having to file for bankruptcy. If you begin using the tips you learned right away, you will surely see a big change in your life, and perhaps you will be able to save your credit history.