Helpful Tips If You Are Considering Filing For Bankruptcy
Bankruptcy comes with so many ups and downs, so many emotions and so many complications. To help sort it all out for you, the following article contains numerous helpful tips. With all that you have to worry about with a pending filing for perHelpful Tips If You Are Considering Filing For Bankruptcy
sonal bankruptcy, the process itself and how to work your way through it should not be one of them.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Just because you have told him something of importance that he will remember it. Speak up. This is your life, and your future depends on it.
See if there is an alternative you can use before declaring bankruptcy. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7 eliminates all debts. The ties with the creditor will be broken. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. Take the time to learn more about these different options so you can make the best decision possible.
Your most important concern is to protect your home. Filing for bankruptcy does not mean you have to lose your home. 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.
After the completion of filing for bankruptcy, get to work reestablishing your credit score. Keep in mind that thirty-five percent of the credit score is calculated using payment history. Keep your payments on time, because you will have to battle the bankruptcy on your report for the next ten years.
If you have co-signers on car loans, or others who are responsible for your bills, consider filing for Chapter 13 bankruptcy if you want to help them. If you file for Chapter 7, you may not have to pay anymore, but they are still responsible. Talk to the people involved, and think carefully before making a choice.
Before you file for personal bankruptcy, weigh all of your options. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. If you are looking at foreclosure, think about a loan modification program. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
When you plan on filing for bankruptcy, you want to protect any assets you can legally protect. During the process, your creditors are likely to liquidate assets of yours whenever possible to fulfill your financial obligations to them. Some assets are untouchable though, so make sure you take the proper steps to protect them. Your retirement account and your home are both untouchable when it comes to liquidation.
Be honest about your debts. When you file for bankruptcy, you need to be completely honest about your debts. If you attempt to hide any income, or assets from a Trustee, you might find that the court dismisses your case. You will also be barred from re-filing any debts that were listed in that petition. Report all financial information, no matter how insignificant it may seem.
Be completely honest when filing your bankruptcy schedules. You must disclose absolutely all of your debts and personal property, including tax refunds, child support, social security and other less-obvious assets and claims. Hiding your assets or claims is a federal crime, which can be punishable by loss of your claim or a prison sentence.
Keep in mind though that personal bankruptcy might prove a wiser choice for your credit history than keeping making late payments. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. Among the advantages of bankruptcy is that of a clean slate.
Hopefully, this article has provided you with some vital information you can use about filing for personal bankruptcy. It can be a scary, life-changing process so you want to make sure you get it right and are able to give yourself the fresh start and new financial perspective that you deserve.