Unfortunately, bankruptcy today is something that is becoming very common. The economic downturn has played a large role. Prior to taking the plunge and filing for bankruptcy, you need information to know if it is right for you, and if it is, what kind of bankruptcy to file. Within this article, you will find the knowledge and need.
Lots of people have to claim bankruptcy when their bills are larger than their income. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. When it comes to bankruptcy, states have varying laws. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Be sure to have some familiarity with the law in your jurisdiction.
Ask yourself if filing for bankruptcy is the right thing to do. Consider any other options that are available to you, such as consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It’s crucial to read that list before filing to see which of your prized possessions can be seized. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
You should never give up. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A qualified bankruptcy attorney can guide you through the filing process.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. The filing process is extremely stressful for a lot of the people who go through it. Depression can ensue from the stress if action isn’t taken. Your life will most likely improve once you’re over this hump, so relax.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. This is harder. Your trustee must approve any new loans such as this. Draft a personal budget to show that you will be able to repay your new loan. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Know the rights that you have as you file for bankruptcy. Some bill collectors will tell you that your debts can’t be bankrupted. What you can’t file on is very small, like student loans or child support payments. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
There are a lot of things to consider prior to filing for bankruptcy. Credit counseling is an important option for you to pursue. Many different non-profit entities exist that can assist you without charging you any fees. They will negotiate with your creditors in order to reduce your payments and interest rates. Once you pay them, they make the payments to your creditors.
Many people file for bankruptcy every year, mainly because the economy is bad for everyone. By using the information you’ve read here, you can now make sound decisions about your finances and choose the bankruptcy option that will work best for you.
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