Are you in a financial jam and you feel like bankruptcy is the only option for you? You’re not alone, so don’t fret. There are thousands of people who file for bankruptcy every day. So have a look through the contents of this article to see what you should know about bankruptcy.
It should go without saying, but refrain from lying in your bankruptcy filings. Not only is hiding income and assets wrong, it is also a crime.
Repayment Plan
Think about all the choices available to you when you file for bankruptcy. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. When all is said and done, the creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. However, it won’t be as easy as it may have been to get one prior to the bankruptcy. Before you can take out a new loan, you will have to clear it with your trustee. It is important to make a budget and prove that you are able to afford the payment. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
An understanding of your rights is important before filing for bankruptcy. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. Only a few debts, including child support and tax liens, are ineligible for bankruptcy. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Make sure the time is right when you file a bankruptcy claim. When it comes to filing for personal bankruptcy, timing is vital. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. Speak with a bankruptcy lawyer to discuss the proper timing for you to file bankruptcy.
Filing for bankruptcy is hard on anyone, and can cause extreme amounts of stress. One way to help reduce is this stress is to hire a reliable attorney. Look beyond the fees a lawyer charges when you make your hiring decision. It may be not be necessary to hire a costly attorney; just make sure he or she is qualified to handle your case. Get referred from others who’ve been in the same situation, check the BBB, and interview several people through free consultations. If you want to know more about a specific lawyer, attend a court proceeding and see how the attorney handles herself.
Look into other options before deciding to file for bankruptcy. You may want to consider credit counseling. There are many different non-profit companies that can help you. These companies work with creditors to reduce your payments and interest. They collect payments from your and then pay the creditors.
Before you file for personal bankruptcy, become more fiscally responsible. It is especially important to refrain from taking on any new debt before filing. Filing bankruptcy should be your first sign that the way you’re living isn’t any good. Now’s the time to get your finances in order so that you can pull your credit out of the gutter. Let them see how you are making positive changes to your personal financial management by demonstrating what you are doing right now.
The introduction to this article emphasized that many, many people have filed for bankruptcy in the past and many will in the future. However, thanks to the piece above, you are better prepared to face the challenges that may come your way. Utilize the tips you learned today and ensure that there is no rough spots when filing for bankruptcy.
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