The national economy is not in very bad shape right now. The result of a tough economy leads to people are losing their jobs and going into uncontrollable debt. Debts can often lead to bankruptcy, which can seem to be a terrible thing.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
If this describes your situation, you should know all about the laws that are in your state. Each state has its own bankruptcy laws. For instance, some states protect you from losing your home in a bankruptcy, but not in others. You should be aware of local bankruptcy laws for your state before filing.
You should not use your retirement savings unless the situation calls for worse times. If you do have to dig into your savings, make sure that you save some to ensure that you are financially secure in the future.
Do not pay your taxes with credit cards that will be canceled when you file for bankruptcy. In many parts of the country, you cannot get this debt discharged, and in the end you will be left owing the IRS a big sum of money. If the tax can be discharged, so can the debt. So using your credit card to pay off your tax obligations, then filing for bankruptcy, can actually hurt you instead of help you.
You might experience trouble with getting unsecured credit after a bankruptcy. If you are in this situation, it is beneficial to apply for one or even two secured cards. This will allow you want to improve your credit record back in order. After a time, you will then be able to acquire credit cards that are unsecured.
Filing a bankruptcy petition might facilitate the return of your property, like your car, electronics or other items that may have been repossessed. You may be able to get your possessions back if they have been taken away from you within 90 days ago. Speak with a lawyer who will provide you file the necessary paperwork.
Do not be afraid to remind your attorney of important specifics of your case. You cannot expect your lawyer to remember every important detail without some reminder from you. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
Chapter 7
Be certain that you know how Chapter 7 and Chapter 13 differ. Chapter 7 bankruptcy completely wipes out your debts for good. Your responsibilities to your creditors will get dissolved. Chapter 13 bankruptcy though will make you work out a five year repayment plan to eliminate all your debts.
Ask for a free consultation with your bankruptcy attorney and ask questions about experience and education. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. The lawyer who properly answers your questions is the one you should hire. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Filing bankruptcy doesn’t automatically involve losing your house. Depending on if your home’s value has gone down or if it has a second mortgage, you may end up keeping it. You may also want to check out the homestead exemption either way just in case.
Chapter 13 Bankruptcy
It is important to protect your home when filing bankruptcy. Filing bankruptcy does not necessarily mean that you will lose your house. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Consider if Chapter 13 bankruptcy for your filing. If your total debt is under $250,000, you may be able to file Chapter 13 bankruptcy. This lasts for three to five years and after this, in which you’ll be discharged from unsecured debt.Keep in mind that missed payments will trigger dismissal of your whole case to get dismissed.
Don’t file for bankruptcy if you can afford to pay your bills. Bankruptcy might seem like a good way to get out of paying your bills, but your credit report will show the scar for the next ten years.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Look at all of your options before you choose to file for bankruptcy. Loan modification can help you get out of this. The lender can help your financial situation by getting interest rates lowered, so they may be willing to forgive some fees, and in some cases will allow you to pay the loan over a longer period of time. When all is said and done, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
Make a list of financial information on your bankruptcy petition. If you don’t do this, your filing could be rejected. This includes any jobs you have on the side, vehicles and loans.
Ensure that you bankruptcy is your best choice. It may be that all you really need to do is consolidate some of your debts. Bankruptcy cases are long, anxiety-filled experiences. It will also limit your ability to get credit for the next few years. Because of this, filing for bankruptcy should only be used as a last resort.
The economy is not in great shape right now, and although things are slowly getting better, there are still large numbers of people out of work and in debt. You can avoid bankruptcy even with no steady source of income. This article should have given you some solid advice for staying afloat in tough times. We wish you well.