The economy is still weak today. A poor economy means more people than ever have debt and are losing their jobs. For a lot of people, filing for bankruptcy is the only logical solution. If you are in a difficult situation and contemplating bankruptcy, this is the perfect article for you.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The U.S. Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. By being well armed with the correct knowledge, you can be certain of the decision that you have made. Additionally, you will understand the processes necessary to conduct your personal bankruptcy matters in a smooth manner.
Unsecured Credit
After a bankruptcy, you may still see problems getting any kind of unsecured credit. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This will demonstrate that you’re seriously trying to restore your credit. Unsecured credit may be offered to you quicker than you think after doing so.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. All of your financial ties to the people you owe money to will disappear. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Protect your house. Filing for bankruptcy does not mean you have to lose your home. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. You are still going to want to check into homestead exemption either way just in case.
Determine if bankruptcy is necessary. Consolidating current debt could make it easier to manage. It can be quite stressful to undergo the lengthy process of filing for personal bankruptcy. Having a bankruptcy on your record will hinder your ability to get credit in the future. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Learn what you can about Chapter 13 bankruptcies. With a consistent income source and less than $250k in debt, try filing for Chapter 13. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.
Even though our economy is slowly improving, many people still do not have jobs or decent wages. Even long-term job loss does not inevitably have to result in bankruptcy. Hopefully, the information in this article has provided you with useful information that can help you stay out of bankruptcy. Good luck.
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