Bankruptcy is stressful and unpleasant, but remember that it is also a solution and a light for the future of your finances. You will have to thoroughly review your finances and allow strangers to scrutinize them even harder; this is naturally stressful. However, once the bankruptcy gets discharged, you can begin to create a better financial situation while all those harassing bill collector phone calls stop. The article below discusses some tips to make bankruptcy less painful.
Prior to filing for bankruptcy, discover which assets cannot be seized. The Bankruptcy Code has lists of various asset types that are exempt during the process. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you aren’t aware of this, you could lose some assets that you value.
Before you file, make sure you understand current bankruptcy laws. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. To find out about these changes, you can look at your state’s legislation website or contact their office.
Chapter 13
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.
Remember to have fun with your life when you’re done with the filing process initially. Filing is the most intensive step in the process, so afterwards it’s important to let go of some of your stress. This stress may lead to something worse like depression, so do what you can to fight that from happening. After you have finished filing for personal bankruptcy, your life will improve.
Chapter 7
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. However, creditors can demand co-debtors pay the amount in full.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. However, it can be more difficult. You need to speak with your trustee so that you can be approved for a new loan. You need to develop a budget and show that you will be able to afford the new payment. You will also need to explain why it is necessary for you to take out the loan.
Know your bankruptcy rights. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. There are few debts that can’t be discharged. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
Bankruptcy is a difficult time that always leads to lots of stress. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Do not choose your attorney based solely on price. Choosing a lawyer should be based on finding one with a proven track record who can give you the help that you need. Ask people who have used a bankruptcy lawyer for referrals, look them up at your local Better Business Bureau, then schedule free consultations in order to interview them. If you wish, you can attend a bankruptcy hearing and witness your attorney in action.
Filing bankruptcy will always have good and bad sides. Remember that whatever reason you have for taking this step, education is your best weapon during the process. This article should help you learn more about personal bankruptcy. Use the above tips to see positive results when filing for bankruptcy.
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