If you have more debt than you could ever hope to pay off, you might feel like your life is over. Sometimes it happens quite quickly, from some financial problems to losing all control in a matter of weeks or months. Once that happens, solutions may be difficult to find. This article will provide suggestions on handling bankruptcy if you find yourself completely overwhelmed.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Don’t just assume they already know and that they have these important details committed to memory or written down. Speak up if something is troubling you, as this is your future we are talking about here.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Don’t throw in the towel. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If the items were repossessed less than three months prior to your filing date, you may be able to recover them. Talk to a lawyer for help with the petition filing process.
Be sure your home is well protected. You do not have to lose your home in the process of a bankruptcy. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
Chapter 13
Consider filing using chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
Act when the time is right. Filling for bankruptcy can be a matter of correctly assessing the right time to begin. For some debtors, immediate filing is ideal, whereas in other cases, it is smart to hold off until a later time. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. It is possible for those going through the bankruptcy process to feel unworthy, guilty or ashamed. These are useless emotions, however, and can be harmful to your mental state. If you want to cope with your bankruptcy filing successfully, you must maintain a positive point of view.
Don’t wait to file for bankruptcy. Do not avoid your creditors; they will not go away. It is important to decide on a course of action as soon as you begin experiencing financial problems. Personal debts can spiral out of control very quickly, and if you don’t take care of them, you may find yourself facing foreclosure or wage garnishment. As soon as you stop denying that your debt is unmanageable, seek the advice of a good bankruptcy attorney.
Sometimes you get overwhelmed with life and you feel as if there’s nothing that you can do about it. Hopefully, this article’s advice has shown you that there are still plenty of steps you can take to improve your situation even when bankruptcy is in the picture. It is time to take action and fix your problems.
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