Debt is one of the scariest things to live with. One day you’re looking at a little mole hill; the next day you’re staring down a mountain. It doesn’t take long at all before the debt becomes too much to handle. Although it is a long and difficult process, there are ways to get through it unharmed and restore your finances. The piece that follows does offer some guidance about how to handle bankruptcy when your burden becomes to much to bear.
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If you are in this position, you need to be familiar with the laws in your area. Every state is different when it comes to dealing with bankruptcy. In some states, your home is protected, while in others it is not. It is important to understand the laws in your state before filing for bankruptcy.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Unsecured Credit
Getting unsecured credit post-bankruptcy will likely be difficult. If that’s the case, it is beneficial to apply for one or even two secured cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. Unsecured credit may be offered to you quicker than you think after doing so.
Never give up. If you file for bankruptcy at the right time it could enable you to get your property back that you lost to repossession. If the repossession occurred within 90 days from your filing date, it is possible that some of your property can be returned to you. Get help from your lawyer to file a petition so you can get your items back.
It is important to protect your home when filing bankruptcy. Bankruptcy doesn’t always mean you’ll lose your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Consider Chapter 13 bankruptcy for your filing. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. You can secure your home under Chapter 13 and pay your debts with a payment plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. When you file a Chapter 7, your debts will be dissolved. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. It’s a bit more difficult, though. First, your trustee will have to approve the loan. You need to show them why and how you can handle paying back the new loan. You also have to prepare yourself to explain the reasons you need to buy the item.
Know your bankruptcy rights. Bill collectors can try to scare you into believing that your debt will not be cleared. You should know that only a few debts cannot be erased, including student loans and child support. If you are speaking to debt collectors about another type of debt and they tell you it cannot be discharged, check your local regulations. You can report the collectors to your state attorney general if they are lying about this.
File when the time is perfectly right. Timing is very important when it comes to personal bankruptcy filings. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. Discuss the strategic timing of your bankruptcy with your attorney.
Filing for bankruptcy can cause stress. Be certain that you hire a competent lawyer to minimize the stress and anxiety you are under. Look beyond the fees a lawyer charges when you make your hiring decision. The cheapest attorney may not be the best, but the most expensive may not be the best either. Get referrals from people you know who have been in your situation, check with the better business bureau and use free consultations to interview several people. If you really want to check up on them check out how well they do at court hearings.
If you plan on filing bankruptcy, never wait too long. It is a mistake to ignore your financial troubles, hoping they will go away on their own. It is too easy for debt to mount up and become uncontrollable, which could lead to loss of assets or wages. Once you’ve decided that you can’t manage your large amount of debt, it’s time to contact a qualified attorney.
There are certain life events that you have no control over. The above article has provided you with advice to allow you to handle your finances and deal with the option of bankruptcy. Use the advice that you have been given to make some changes in your life.
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