A lot of folks in modern times are deep in debt. It seems that they can never pay their bills down, and they’re constantly pursued by collection agencies and creditors. If you find yourself in these circumstances, you might want to think about filing for personal bankruptcy. Continue reading this article to find out if bankruptcy is something you need to consider.
When people owe more than what can pay, they have the option of filing for bankruptcy. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. Each state has its own set of rules regarding bankruptcy. Some states protect your home, and others do not. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States The Department of Justice is just one resource of information available to you. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
Credit History
Consider all options before deciding to file for personal bankruptcy. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. Avoid touching your retirement accounts whenever possible. You may have withdraw from your savings every now and then, but try to leave yourself some financial security for the future.
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 do, then try applying for a coupe of secured cards. This at least shows you are making an honest attempt at reestablishing your credit worthiness. Unsecured credit may be offered to you quicker than you think after doing so.
Keep working to improve your situation. You might even be able to get back secured property that has been repossessed in the 90 days before filing. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Consult with a lawyer who is able to assist you in the filing of your petition.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. 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.
Consider all options before filing for bankruptcy. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. If you are looking at foreclosure, think about a loan modification program. 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.
As you now know, you have plenty of assistance available for filing bankruptcy. Bankruptcy can help you start over with and give you tools to become a more responsible consumer.
This is a limited-time offer. We are not able to guarantee availability if you wait!
