Are you in debt? Do you think that there is no way to get out of your debt except to file for bankruptcy? By simply searching online and doing a little research you can possibly avoid filing for bankruptcy. If you are ready to consider alternatives to a bankruptcy filing, the advice presented here may help.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. The laws governing bankruptcy vary from state to state. In some states, your home is protected, while in others it is not. Be aware of bankruptcy laws before filing your claim.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Always be honest with the information you give about your finances. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. Never assume that they can remember all details without reminders. This is your future in their hands, so don’t be scared to mention it.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is important to be aware of this list so you will know what assets are saved. If you aren’t aware of this, you could lose some assets that you value.
Before declaring bankruptcy, ensure that all other options have been considered. For example, you may want to consider a credit counseling plan if you have small debts. You may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.
Protect your house. It isn’t inevitable that you will lose your house when you file for bankruptcy. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
Don’t isolate yourself from family and friends. Bankruptcy can really wear down your emotional reserves. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. A lot of people become depressed and withdrawn until their bankruptcy is discharged. You shouldn’t do this, though, as staying away from the world can amplify any emotional issue you are having, and they could even morph into full-blown clinical depression. Time spent with people who care about you can give you new perspective on your financial situation.
Filing Bankruptcy
If you’re willing to learn and exercise patience and understanding in the process, filing bankruptcy doesn’t have to be a difficult process. Take the time you need to plan properly. Just be certain you are taking the right steps to prevent yourself from filing bankruptcy. Now begin planning for your future.
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