Sound Advice On Making Bankruptcy Work For You
Posted at by PConran on category BankruptcyGoing through bankruptcy is a stressful experience. When things are tough financially, your credit options are limited. Yet even if your credit score is not good there are things you can do to still get the things you want, such as a car or home loan, read on to find out how.
Learn as much as you can about bankruptcy by going to informational websites. The U.S. Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Don’t hire an attorney who fails to address all your concerns and questions. You do not need to make a decision immediately after the consult. After your consultations, do some additional research on each attorney you consider qualified for the job.
Weigh all of your options before declaring bankruptcy. Those with smaller debts may find use in a program for consumer credit counseling. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. By researching each type, you can begin to understand which method is right for you. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Consider Chapter 13 bankruptcy for your filing. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Consider that if you even miss one payment, your case will not be considered by the court.
If your paycheck is larger than your debts, avoid filing for bankruptcy. Bankruptcy might seem like a good way to get out of paying your bills, but it will devastate your credit for the next ten years.
Know the rights that you have as you file for bankruptcy. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.
Even if you have filed for bankruptcy you now realize that this does not limit you in life forever. By becoming financially responsible post-bankruptcy, you’ll be showing lenders that you’re serious about reestablishing your credit worthiness. So implement a savings program, and watch how much it helps you when you need to apply for a home or car loan.