Those dealing with personal bankruptcy filing are known to experience feelings of embarrassment, irritation and shame. They may feel trapped in their debt, wondering how to survive the next day. However, bankruptcy isn’t a process that will forever hurt your future.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The U.S. D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
As filing bankruptcy becomes more of a reality, don’t use your entire savings or your retirement funds to pay creditors or attempt to resolve insolvency. Don’t touch retirement accounts unless you don’t have a choice. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Don’t hesitate to give your attorney a heads-up about something she has missed. Just because you have told him something of importance that he will remember it. Don’t fear speaking up since it affects your case and future.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Keeping secrets or trying to outsmart everyone is not a wise move.
Chapter 7
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. In Chapter 7 bankruptcy, your debts are all eliminated. Any ties that you have with creditors will be dissolved. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You must know about the different bankruptcy types, and how each can affect you.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Research them online to see the positive and negative aspects of each one. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. This lasts for three to five years and after this, your unsecured debt will be discharged. Consider that if you even miss one payment, your case will not be considered by the court.
Once your initial filing is complete, it is time to take some time to relax a little. It’s easy to be stressed during this time. Make sure you take care of your part and let your attorney do the rest. Life will get better; you just need to make it through the bankruptcy process.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. Failing to list these could cause the dismissal or delay of your bankruptcy petition. Even small amounts of money contribute to your overall financial picture, so do not exclude them. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Credit Counseling
Consider all of your options before filing for bankruptcy. You should consider credit counseling. You can get the help you need from a variety of non-profit credit counseling companies. They can speak with your creditor about getting your payments and interest reduced. You’ll make your payments to the company, and the company will pay off your creditors.
You should keep in mind that in the long run, bankruptcy can have a more positive impact on your credit score than continually missing payments towards your debt. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. One of the good things about bankruptcy is that you can start fresh.
Now that you’ve reached the end of this article, you should see that bankruptcy doesn’t mean leading an unhappy life. It may be hard in the beginning; however, you can get past bankruptcy. Using these tips will allow you to get through this process with ease.
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