Filing for bankruptcy is not a pleasant experience. Many people feel embarrassed or ashamed if they have to tell other people that they are bankrupt. Follow the steps presented here to determine whether or not you need to file for personal bankruptcy at all.
Ask yourself if filing for bankruptcy is the right thing to do. Look into other options, such as consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Always be honest when filling out paperwork. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Being honest is both the right thing to do and, moreover, it is required by law.
Stay up to date with any new bankruptcy filing laws. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Your state’s website should have the information that you need.
60 Month Period
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. Any ties that you have with creditors will be dissolved. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
Be sure you have no other choice but to seek bankruptcy. Consolidating current debt could make it easier to manage. Bankruptcy is not a simple, breezy course of action that should be taken lightly. It will have a major effect on your credit as time goes on. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. A lot of the time you can lower payments by filing for Chapter 7 bankruptcy. There are qualifications, such as the loan being high interest and a good work record for this option.
Chapter 7
Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. Once you complete a Chapter 7 bankruptcy, you will be free of any responsibility of debt, which could put all responsibility on someone close to you. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
Carefully pick the lawyer you will use when filing for bankruptcy. There are many new or inexperienced newcomers who choose this field to practice in. Be certain your attorney has enough expertise and has a valid license. The Internet can be helpful in investigating an attorney’s disciplinary record, client ratings, and background.
Once the bankruptcy is a few months old, you should re-evaluate your credit with all three of the credit bureaus to confirm accuracy. Check to make sure that your report accurately shows that your debts have been discharged and that closed accounts are also updated. Challenge discrepancies as soon as possible in order to repair your credit.
Filing a petition for bankruptcy should be a last resort. The tips laid out here will guide you toward the right road so you can avoid bankruptcy. Start using the information you learned from this article and make changes so you may not have to ruin your credit history.
This is a limited-time offer. We are not able to guarantee availability if you wait!
