Learning more about the process of bankruptcy is, sadly, something that a lot more people have to do today. Most people cite the economy for having to file for bankruptcy. Prior to making the decision to file a petition, you need to have a thorough understanding of the topic so that you act in your own best interest. Keep reading for the knowledge you need.
Bankruptcy Laws
Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Bankruptcy laws vary from state to state. Some states protect your home, and others do not. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. You have other options, including consumer credit counseling help. Bankruptcy can leave your credit history permanently marked. Prior to doing this you need to be sure you try everything else first to get your credit history into shape and to lessen the impact.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If you find yourself in this situation, you may want to think about getting a secured card or two. When you do this, it shows your determination to fix your credit history. It will take time, but when creditors see a pattern that satisfies their need to see your good faith with payments, you will then be able to apply for unsecured cards.
Find out what you exemptions are prior to filing bankruptcy. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. You need to read the exemptions for your state, so you know what property you can protect. You wouldn’t want to unexpectedly lose any possessions you treasure.
There is hope! Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Talk with an attorney who can guide you through the process of filing a petition.
Brush up on the latest bankruptcy regulations before you decide whether or not to file. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Taking the time to compare lawyers will ensure that you get a person that you can be yourself around.
Your most important concern is to protect your home. Filing for bankruptcy will not always result in losing your home. You can still keep your home, it just depends on your specific situation and the value of your home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Debt Repayment
Consider all options before filing for bankruptcy. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. If you are about to lose your house, talk to your lender about a loan modification. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. After all is said and done, your creditors will still want their money. For this reason, you may wish to investigate debt repayment programs in lieu of bankruptcy programs.
As you read at the start of this article, bankruptcy has become a very common process now due to the economy. So, use what you learned today so that you know what decisions to make while you contemplate filing for bankruptcy.
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