Most people that file for bankruptcy owe a lot of money that they could not pay off. If this sounds like you, start familiarizing yourself with your state laws. Bankruptcy rules vary by jurisdiction. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Know what the laws are in your state before filing.
Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. The point of bankruptcy is to have a clean slate and a fresh start. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Be sure you’re doing what’s right before you file for bankruptcy. You can find services like counseling for credit that consumers can use. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Keep at it! When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Consult with a lawyer who is able to assist you in the filing of your petition.
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If so, apply for a secured credit card. By doing this, you will be letting people know that you want to fix your credit score. It will take time, but when creditors see a pattern that satisfies their need to see your good faith with payments, you will then be able to apply for unsecured cards.
Protect your home. Filing for bankruptcy does not always mean you will end up losing 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. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Ask for a free consultation with your bankruptcy attorney and ask questions about experience and education. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Only make your decision if all your questions and concerns are adequately addressed. It is not necessary to decide immediately after your consultation. You have lots of time for consulting with other lawyers.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. Bill collectors can try to scare you into believing that your debt will not be cleared. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
If you’re going to file bankruptcy, you need an attorney. You may not know everything you need to know in order to have a successful outcome of your case. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Know the laws and guidelines about bankruptcy before you formally file. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. If the regulations are not followed, your case may be subject to a dismissal order. Do the proper research on bankruptcy before taking the next step. If you take care of this now, you can avoid problems going forward.
It is possible to keep your home. You don’t have to lose your home just because you are filing for bankruptcy. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Keep in mind though that personal bankruptcy might prove a wiser choice for your credit history than keeping making late payments. Yes, the bankruptcy will stick around for a whole ten years, but the clean slate you get from filing will help you get back on the right track quickly. This is why people call bankruptcy a fresh start.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Two to three months following your bankruptcy hearing, get a copy of your credit score from the major reporting agencies. Check to make sure that your report accurately shows that your debts have been discharged and that closed accounts are also updated. Resolve any problems immediately so you can build up your credit score as quickly as possible.
Once you have met with an attorney, you may be given a telephone number for your creditors to confirm you are filing bankruptcy. By giving them the information, they can inform creditors that your debt will be covered by bankruptcy. This should put an end to their calls.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This lasts for three to five years and after this, your unsecured debt will be discharged. However, if you were to miss a payment, the court would dismiss your case right away.
There are some debts that a bankruptcy will not eliminate. Debts like student loans always remain on your report even if you file. If you need to reconcile debts of this kind, use an agency that specializes in credit repair or loan consolidation instead of filing for bankruptcy.
As said previously, a situation leading to bankruptcy can be upsetting. However, what happens to your life after bankruptcy can have a happy beginning. In fact, if you apply the ideas and advice given in this article, you can truly make bankruptcy a turning point in your life towards better days.
Do not delay in filing for bankruptcy. If this is your only option, waiting will not make it any better. The longer you wait, the more stressed out you will feel and the worse your financial situation will become. That can negatively affect your life. The sooner you begin the process, the better.