You are not alone if you have become a victim of debt. Countless Americans are currently being harassed by debt collectors on a daily basis. You may have found yourself in the same situation, and you should know that bankruptcy could be a good option for you. Continue reading this article to find out if bankruptcy is something you need to consider.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. You can also avail yourself of other options, such as consumer credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. No matter what you do, do not touch your personal savings unless there is no other option. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. It is important to know what types of possessions may be taken away before they actually are seized.
Check into less drastic solutions prior to declaring bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Repayment Plan
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. If you are about to lose your house, talk to your lender about a loan modification. 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. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Make sure you understand your rights as you file for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. Most loans can be discharged outside of certain things, like child support or loans you are paying back due to student lending. If the bill collector is trying to deceive you, then report that company to your local attorney general’s office.
Before you file for personal bankruptcy, take great care in paying off your debts. There are bankruptcy laws which forbid repayment of some creditors within three months before filing. In the case of family members, this period of time may extend to a full year. So, before you ultimately decide to file a claim, be sure that you understand the rules in place.
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. While it may be difficult to accept that you are in trouble, waiting only prolongs the agony. If you talk to a financial professional, they can assess your situation and give you suggestions on what could solve the problem.
Know that ultimately, bankruptcy could get you a higher credit score than to keep making late payments or missing payments altogether. While bankruptcy will haunt your credit history for up to ten years, your damaged credit will start healing right away. The main benefit to filing for bankruptcy is the chance at a new start.
It is not uncommon for those who have endured a bankruptcy to promise to never utilize credit again. The fallacy in this thinking is that credit is needed to improve your credit history again. Avoiding credit altogether prevents you from rebuilding your credit standing, and will therefore serve as an obstacle when you wish to finance a house or a vehicle. You can rebuild your credit slowly, beginning with just one credit card.
Once you decide to file, it is important to act in a more financially responsible manner. Don’t start racking up debt and don’t start up more dept before bankruptcy. The courts and your creditors will be looking at your current, as well as past, credit history when adjudicating your bankruptcy. You should show them that your current spending behavior is being worked on by how you spend now.
When you file for bankruptcy, you want to be certain that your papers include every debt that you need to get discharged. If you forget to include any of your debts in the filing, you lose the chance to discharge them. You must ensure that all essential data is recorded in order to guarantee that every debt is included in your discharge.
Chapter 7
If after filing for Chapter 7 you aren’t qualified for Homestead Exemption, there is a possibility you can file Chapter 13. Your attorney should be able to tell you whether it is advantageous for you to convert your Chapter 7 filing into a Chapter 13.
If you are hiring a lawyer, be sure to choose one who has experience with bankruptcy. Lots of lawyers are interested in getting your business. The inexpensive lawyers will probably fail in the knowledge department. Avoid the temptation to jump on board.
You have undoubtedly gleaned from the text above that bankruptcy doesn’t have to be a difficult process as long as you’re informed. Tackling this in a logical and emotionless manner will relieve you of your debt issues while giving you a fresh start for the future.
This is a limited-time offer. We are not able to guarantee availability if you wait!
