The Pros And Cons Of Considering Personal Bankruptcy
Posted at by PConran on category BankruptcyIn order to file a bankruptcy claim, you will run into more than a couple of complicated hurdles to jump. There are a number of kinds of bankruptcy, and to determine the best kind, you must consider the state of your finances and the type of debt you have. It is essential to learn as much as you can about bankruptcy before choosing to file. This article will give you some of the important facts about bankruptcy.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this is happening to you, then learn about the laws where you live. You will find that each state has their own bankruptcy laws. Some states protect your home, and others do not. Know what the laws are in your state before filing.
Do not give up. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. 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.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. Your ties with all creditors will get dissolved. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring 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. Comparing different lawyers makes it possible to find one with whom you work well.
Protect your house. Filing for bankruptcy does not always mean you will end up losing your home. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Thing about filing a Chapter 13 bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Remember that missing a payment to the plan will result in your case being dismissed.
As you can see, filing for bankruptcy is a serious decision that must be considered carefully before you make it. Once you have determined that filing for personal bankruptcy is the right choice for a you, engage an experienced and respected lawyer. With the help of a good lawyer, you can make your way through the process easily and secure in the knowledge that you are doing it right.