Carrying too much debt is a problem a lot of people are dealing with now. They are bothered by collection agencies and creditors and their bills are not being paid down. If you are having financial difficulty, it is a good idea to research all your options, including bankruptcy. The bankruptcy laws vary in each state, so educate yourself on the laws in your state.
Bankruptcy Laws
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this sounds familiar, you should read up on the bankruptcy laws in your state. Bankruptcy laws vary from state to state. For instance, some states protect you from losing your home in a bankruptcy, but others do not. Be sure to have some familiarity with the law in your jurisdiction.
Be certain to gain a thorough understanding of personal bankruptcy by using online resources. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
It should go without saying, but refrain from lying in your bankruptcy filings. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Don’t just assume that the attorney will remember it automatically. Speak up. This is your life, and your future depends on it.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Do not hold anything in secret and create a strategy on how you will deal with the things you are facing.
Avoid paying for a consultation with the bankruptcy attorney, but do ask many questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Only choose a lawyer if you feel like your questions were answered. You do not have to give them your decision right after the consultation. Take the time to meet with a number of attorneys.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Learn the benefits and drawbacks of each type before deciding which is right for you. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Chapter 13
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Make sure bankruptcy is truely your only option before filing. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. A plan that can be useful when foreclosure is looming is a loan modification. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. In order for this to be considered, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
As you can see, there is a lot of help available if you are considering filing for personal bankruptcy. Tackling this in a logical and emotionless manner will relieve you of your debt issues while giving you a fresh start for the future.
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