Sound Advice On Making Bankruptcy Work For You
Posted at by PConran on category BankruptcyJust thinking of filing for bankruptcy can scare a person. A good number of families are having trouble containing their debt and managing their expenses. Does the thought of this scare you? Perhaps you are going through it right now, and the advice found here can help your situation.
Many people need to file for bankruptcy when they owe more money than they can pay off. If you find yourself going through this, you should know all about the laws that are in your state. When it comes to bankruptcy, states have varying laws. For example, the personal home is exempt from being touched in some states, but not in others. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Not only is hiding income and assets wrong, it is also a crime.
See if there is an alternative you can use before declaring bankruptcy. For example, you may want to consider a credit counseling plan if you have small debts. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Safeguard your most valuable asset–your home. Filing for bankruptcy does not always mean you will end up losing your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. 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.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Do some research about these options so you can choose the best one. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Remember to only file for bankruptcy if you need to. It may be that all you really need to do is consolidate some of your debts. Bankruptcy is a stressful process. The future of your credit will be greatly affected. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Be around family as much as possible. The bankruptcy process can be brutal. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. Most people adopt a very negative attitude toward bankruptcy. 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. It’s crucial to spend time with loved ones despite your present financial situation.
Don’t forget to enjoy yourself during your bankruptcy. It’s easy to be stressed during this time. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. While the process is tough, you are getting a chance to start over.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. In many cases, Chapter 7 bankruptcy can lower your payments. 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.
It is normal to feel apprehensive about filing for bankruptcy, because it is not an easy process. Don’t let your fear take over. You now have the knowledge necessary to overcome the fear. Take this advice to heart, and do everything possible to improve your situation.