Bankruptcy: Everything You Need To Know Before You File
Posted at by PConran on category BankruptcyIf bankruptcy is looming over your head, it’s time to stop worrying and get proactive. Because of the Internet, it is very simple to find information about preventing situations like bankruptcy. Continue on for some excellent tips that will help you avoid filing for bankruptcy.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Brush up on the latest bankruptcy regulations before you decide whether or not to file. Laws are subject to change, and it’s important that you’re educating yourself about current code only. Your state’s website should have the information that you need.
Make sure your home is safe. Filing for bankruptcy doesn’t automatically involve losing your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Consider Chapter 13 bankruptcy for your filing. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. However, if you miss even one payment, the court will dismiss your entire case.
Do not file for bankruptcy if your income is greater than your bills. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
You can still take out a car loan or mortgage while you are in Chapter 13 bankruptcy. But, it could be harder. Before you can take out a new loan, you will have to clear it with your trustee. Present a planned budget that shows how you can take on the loan payment and stay current. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. It is not uncommon for bankruptcies to elicit feelings of guilt, remorse and embarrassment. But, such emotions get you nowhere, and they can cause significant mental issues to emerge. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Because of the comes from bankruptcy, you may feel overwhelmed and stressed. Working with a good bankruptcy lawyer can help make the process a lot smoother and less stressful for you. Try not to pick a lawyer based on cost alone. Quality is far more important than expense when it comes to a good bankruptcy attorney. Make sure people who have experienced bankruptcy give your referrals. Often, watching a bankruptcy proceeding can give you clues to the quality of a lawyer.
Proper planning could place you in the proper place. Take the time you need to plan properly. Remember to keep working towards your goal of avoiding bankruptcy. Make appropriate, responsible plans and secure your financial future.