There is no doubt that the current economy is a challenging one. The difficult economic circumstances have caused increasing levels of unemployment and personal debt. Too much debt leads to bankruptcy, which can be an extremely traumatic experience. If you are in a difficult situation and contemplating bankruptcy, this is the perfect article for you.
Most people end up filing for personal bankruptcy because they owe more than they make. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Different states use different laws when it comes to bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Make sure you know the laws where you live before you file.
Personal Bankruptcy
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The US Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
Be aware that getting unsecured credit is going to be tough once you’ve gone through bankruptcy. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will demonstrate that you’re seriously trying to restore your credit. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Do not make any final decisions until every question you have has been answered. You need not decide right away. Take the time to meet with a number of attorneys.
Hire a lawyer if you plan on filing for bankruptcy. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Chapter 13 Bankruptcy
Know the differences between Chapter 7 and Chapter 13 bankruptcy. The Chapter 7 variety can help you eliminate your debts almost entirely. Any debts that you owe to creditors will be wiped clean. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. To make the wisest choice, you will need to understand the consequences of each of these two options.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Spend time researching the advantages and disadvantages of filing for each one of these. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
If you are thinking about filing for bankruptcy, one of the first things you should do is look into the laws of your state. For instance, you may not be aware that a filer is forbidden from transferring assets from his or her name for one full year before the petition is filed. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
Don’t put off filing for bankruptcy until you are in dire straits. As with anything in life, putting off important things such as debt repayment can snowball quickly out of control. Talk to a lawyer as soon as you can to get the advice that you need.
Bankruptcy Filing
Prior to going through with a bankruptcy filing, be sure to list out every one of your expenditures and debts. Only the debts you list on your bankruptcy filing will be discharged, so make sure all of them are included. Be sure to verify the exact amount of each debt you owe by checking paperwork or calling your creditors. Remember to take your time here. Rushing through will ensure that some numbers somewhere will be mixed up and then the process will blow up in your face.
Make sure that you include every one of the debts you would like discharged in your bankruptcy filing paperwork. Any debts that you leave off of your paperwork will be left out of the final discharge. It is up to you to ensure all things that need to be taken care of are written down, otherwise you will be stuck paying on things that weren’t discharged.
Joining an online community with people who are also going through the bankruptcy process can be a great way to feel better. Going through bankruptcy is extremely stressful. This can cause you to feel isolated from other people. You can, however, share your struggles with others who are going through the same thing on the Internet.
In most cases, if your case is dismissed due to an error you’ve made, you’ll have the opportunity to re-file. However, in most cases you will only have the benefit of the automatic stay for 30 days after you file if your case was already dismissed once. If you need more than the allotted 30 days you should ask the judge for an extension if you have good cause.
Even the economy is gradually getting better, many people still do not have a job. Even if you do not have a steady income, you may still be able to avoid bankruptcy. Hopefully, you won’t have to file for bankruptcy. Good luck.
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