If you are facing the possibility of bankruptcy and are looking for information to help you in your decision, you’ve come to the right place. Due to the Internet, there are all kinds of tips on how you can avoid bankruptcy. This article can help you take steps to avoid bankruptcy, and how to handle it if you must file.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. Study the laws in you state to learn what you need to do and what your options are. Each state has its own set of rules regarding bankruptcy. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Getting unsecured credit post-bankruptcy will likely be difficult. If this happens to you, think about applying for a couple of secured credit cards. This will demonstrate that you’re seriously trying to restore your credit. Then, in time, it may be possible for you to obtain an unsecured credit card.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Don’t throw in the towel. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Consult with a lawyer who is able to assist you in the filing of your petition.
It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Protect your house. Bankruptcy filings do not necessarily mean that you have to lose your house. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Debt Repayment Plan
Think about all your options before pulling the trigger. 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 a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. In many cases, Chapter 7 bankruptcy can lower your payments. In order for this to succeed, you must have bought your car in excess of 910 days before filing, have a higher interest loan for it as well as a consistent work history.
If you plan correctly, you can position yourself well. The more time you can obtain for yourself, the better off you will be. Doing so can help you avoid bankruptcy. Once you have a plan, you’ll be ready for whatever happens.