When in a financial low, you make wonder if bankruptcy is the best choice. You don’t have to feel alone in this. Many people, over the past few difficult years, have found that bankruptcy is the only way to get out from under their mountain of debt. You are going to be given advice in this article that will help ensure the bankruptcy process goes properly.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If that is the case, you should try applying for one, or two secured cards. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. After a time, you are going to be able to have unsecured credit cards too.
Before filing for bankruptcy, hire a qualified attorney. You might not understand all of the various aspects to filing for bankruptcy. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Familiarize yourself with the bankruptcy code before you file. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Research them online to see the positive and negative aspects of each one. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Avoid filing for bankruptcy if you make more money than your monthly bills. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
Look at all of your options prior to deciding to file 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. Look into loan modification plans if you need to deal with an imminent foreclosure. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. Most creditors will be willing to work out an option to avoid not getting paid at all.
Filing for bankruptcy is hard on anyone, and can cause extreme amounts of stress. Engage a competent lawyer in order to avoid excess stress and keep everything on track. Try not to pick a lawyer based on cost alone. The cheapest attorney may not be the best, but the most expensive may not be the best either. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. If you wish, you can attend a bankruptcy hearing and witness your attorney in action.
As was stated earlier, the bankruptcy journey is one shared by many others. However, others who are filing for bankruptcy do not have the advice that you have just been given. Make an effort to use the information shared here with you to simplify the bankruptcy process for yourself.