Protect Yourself And Your Assets With These Bankruptcy Tips
Posted at by PConran on category BankruptcyNobody thinks they will experience a bankruptcy filing during their lifetime. People can do their best to stay on top of finances, and when one or more financial emergencies come at them, they find that they have no choice but to look into bankruptcy. If you see yourself headed towards bankruptcy, the tips contained in the article below will be of great help to you.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Unless there are no other options, your retirement funds should never be touched. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Should you choose Chapter 7, your total debt load will be erased. All the things that tie you to creditors will go away. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. To make the wisest choice, you will need to understand the consequences of each of these two options.
Make sure your home is safe. Bankruptcy filings do not necessarily mean that you have to lose your house. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Be sure you go on the Internet and do your research to see what’s best for you. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Consider filing for Chapter 13 bankruptcy. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Keep in mind that missed payments will trigger dismissal of your case.
While going through this process, spend more time with friends and family. Going through bankruptcy is a lot of stress. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. It is not uncommon for a person to feel the need to pull away from loved ones during the process. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. Make it a point to catch yourself if you feel yourself pulling away from others. Tell others that you would like to do some enjoyable things together while you go through bankruptcy process, then do it.
If you have decided that your only option is filing for personal bankruptcy, you’ll want to know exactly the right steps to take to proceed . The process will be a lot easier if you have the right information. This article has provided much of that information, so that you can approach your finances in a less stressed state of mind.