There is no doubt that the current economy is a challenging one. The result of the dreadful economy is that many people are losing their jobs and falling into uncontrollable debt. Debts can result in filing for bankruptcy, which can seem to be a terrible thing. If you would like to know how to get yourself or your friend out of filing for bankruptcy, read on for some possible answers.
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. Different states have different laws regarding bankruptcy. For example, the personal home is exempt from being touched in some states, but not in others. Be aware of bankruptcy laws before filing your claim.
Exhaust every other option before making the decision to file for personal bankruptcy. You have other options, including consumer credit counseling help. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
Find out what you exemptions are prior to filing bankruptcy. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You don’t have to make your decision right after this consultation. This offers you the opportunity to speak with other attorneys.
Do some research about laws and legislation before filing. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. To learn about any changes, search the Internet or contact your state’s legislative office.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
If you are going to be filing for bankruptcy, think about filing Chapter 13. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Just know that missing one payment could cause your case to be dismissed.
Do not file for bankruptcy if your income is greater than your bills. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
When you file for bankruptcy, you should be very aware of your rights. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
Banish the word “shame” from your vocabulary before you file for bankruptcy. It is not uncommon for bankruptcies to elicit feelings of guilt, remorse and embarrassment. These are useless emotions, however, and can be harmful to your mental state. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Even though the economy is slightly getting better, so many people do not have jobs or are not getting paid enough. If you don’t have steady income, you might still be able to avoid bankruptcy. Hopefully this article has provided you with some tips to keep yourself, or someone else, from having to file for bankruptcy. Hopefully better things await you in the near future.
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