Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. With a clean slate, it is possible to start over both financially and personally. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If this sounds like you, start familiarizing yourself with your state laws. Laws differ from one state to the other. Your home and other major assets may be protected in your state, while they are vulnerable in other states. Make sure you know the laws where you live before you file.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You can also avail yourself of other options, such as consumer credit counseling. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You need to read the exemptions for your state, so you know what property you can protect. It is important to know what types of possessions may be taken away before they actually are seized.
Don’t throw in the towel. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Speak with your attorney about filing the correct petition to get your property back.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. If you are not sure about the current laws all you have to do is look into what laws have been passed.
Chapter 7
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. Chapter 7 is the best option to erase your debts for good. All the things that tie you to creditors will go away. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Take steps to ensure your home is protected. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
As you read in the beginning of this article, bankruptcy is not something anyone looks forward to. That said, filing for bankruptcy can be a positive turning point in your life. Actually, by using the advice you’ve learned here, your story of hardship could have a happy ending after all!
This is a limited-time offer. We are not able to guarantee availability if you wait!
