Advice On And Options For Declaring Personal Bankruptcy

 

The economy today is in a dreadful state. People carry more debt and find it harder to stay fully employed when the economy is this bad. And these debts get to the point where people end up filing for bankruptcy. If a family member or a loved one is on the verge of filing for bankruptcy, the following article can help you understand more about the process and whether it offers an appropriate solution.

There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Take time to research this online and see the pros and cons for filing each one. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.

Find a bankruptcy lawyer that has a good reputation in the area you live in. Ask if you can get a free consultation to find out if bankruptcy is the best option. If you can get a free meeting with the attorney, be sure to make an appointment and bring along all of your relevant financial information. A good attorney will answer any questions you may have about the process.

Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.

Chapter 13

Filing for bankruptcy doesn’t always discharge 100% of the debts that you have. Filing a chapter 13 bankruptcy will allow you to keep some of your property and continue to pay off some debts. There are those who do not wish to file for bankruptcy, because they see it as a sign of irresponsibility. With Chapter 13, people can escape their debts, but can still make good on what they owe to creditors.

It is important to consult with an attorney who specializes in bankruptcy if you are headed toward bankruptcy. Skilled lawyers have the ability to counsel you on whether you ought to file for bankruptcy and can also handle court appearances. They can also help to unravel the complexities of the paperwork and give you any further information you need.

Some people don’t know that bankruptcy can actually help your credit more than making late or no payments to your creditors. Bankruptcies can remain on your credit reports for 10 years, you can jump right into repairing your credit. A major benefit of the bankruptcy process is the ability to essentially start over.

Be sure to hire an attorney before you embark upon filing for personal bankruptcy. You may not know everything you need to know in order to have a successful outcome of your case. A qualified bankruptcy attorney can guide you through the filing process.

Keep at it! Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Interview and research attorneys before choosing one to help you with your bankruptcy.

Credit History

Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. You have other choices, including consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.

Consider Chapter 13 bankruptcy for your filing. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. However, if you were to miss a payment, the court would dismiss your case right away.

Even though there are rumors that the economy is improving, lots of people are jobless or under employed. If you don’t have steady income, you might still be able to avoid bankruptcy. This article has likely given you some ideas on how you can protect yourself from having to file for bankruptcy. Godspeed.

 
DISCLAIMER: This website is for informational purposes only and does not constitute a complete description of our investment services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY 'LINKED' WEBSITE.
01/01/2013