There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. Countless Americans are currently being harassed by debt collectors on a daily basis. If this is happening to you, personal bankruptcy may be an option. Continue reading to learn more about whether you need to file for bankruptcy or not.
Most people end up filing for personal bankruptcy because they owe more than they make. If this is happening to you, then learn about the laws where you live. Different states have different laws regarding bankruptcy. You may find your home is safeguarded in one state, while in another it isn’t. You should be aware of local bankruptcy laws before filing.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Department of Justice and American Bankruptcy Institute are two such places to look. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. Other available options include consumer credit counseling. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. It is important to know what types of possessions may be taken away before they actually are seized.
You should never give up. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Interview and research attorneys before choosing one to help you with your bankruptcy.
Free Consultations
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. It is not necessary to make a final decision right away. You could even go to different lawyers for advice.
Bankruptcy is tricky and hiring a good lawyer will be a must. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. An attorney specializing in personal bankruptcies can assist and make certain things are being handled correctly.
Consider filing a Chapter 13 bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Consider that if you even miss one payment, your case will not be considered by the court.
If you are making more money than you owe, bankruptcy should not even be an option. 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.
Consider all options before filing for bankruptcy. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. If you are looking at foreclosure, think about a loan modification program. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. You can often lower your payment using Chapter 7 bankruptcy. But, your car has to have been bought at least 910 days before you file. Also, it must come from a high interest loan and you have to have been consistently working.
Now you should be aware that there is plenty of available help when thinking about filing for bankruptcy. Tackling this in a logical and emotionless manner will relieve you of your debt issues while giving you a fresh start for the future.
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