The economy today is in a dreadful state. With a bad economy means that more and more people are losing jobs and getting in debt. Too much debt leads to bankruptcy, which can be an extremely traumatic experience. Learn how to get through a bankruptcy filing by reading this article.
Ask yourself if filing for bankruptcy is truly your best option. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. Retirement accounts should never be touched if it can be helped. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
No matter what, don’t give up! There may still be way to get repossessed items back after you file for bankruptcy. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. Take your time before you decide to file after you meet with your lawyer. This offers you the opportunity to speak with other attorneys.
60 Month Period
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Chapter 7 eliminates all debts. Your former ties with creditors will cease to exist. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Safeguard your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Debt Repayment
Make sure bankruptcy is truely your only option before filing. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. If foreclosure looms, think about getting your loan plan modified. There are many ways in which a lender can make adjustments that will be helpful to you. Among them are extending the loan, forgiving late charges and reducing the interest rate. Creditors want to recoup the most money possible from debtors, and they can often get more through debt repayment plans than bankruptcy procedures.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. This is a lot harder. You have to meet with your trustee to get approval for the new loan. Create a budget and prove you can afford a new loan payment. You also need to be prepared to answer questions about your need for the new item.
When you are filing for bankruptcy, make sure you list all of the financial information you may have. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. Even small amounts of money contribute to your overall financial picture, so do not exclude them. This includes income from second or part time jobs, vehicles and loans.
While some new jobs are beginning to pop up, many people are struggling to find decent income; in fact, many people searching for any job. If you lack a steady job, you still may be able to prevent the need for a bankruptcy filing. Hopefully these tips will help you. I wish you the best of luck.
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