Some people think bankruptcy is an option for "losers"; those are usually the first people that think differently when bankruptcy affects them. A financial catastrophe, like a major medical emergency, can cause someone to face bankruptcy. If you are in this situation, the advice listed here can help you.
Lots of people have to claim bankruptcy when their bills are larger than their income. If this applies to you, be sure that you know what the laws of your state are. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. For instance, your home might be protected in some states while you might lose it in others. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Signs It Might Be Time To File For Personal Bankruptcy Always be honest and forthright when it comes to your bankruptcy petition. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Keeping Your Head Above Water When Bankruptcy Is The Option You may still have trouble receiving any unsecured credit after a bankruptcy. Look into getting a secured credit card in order to get back on your feet with building credit. This at least shows you are making an honest attempt at reestablishing your credit worthiness. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
It is possible to keep your home. Bankruptcy doesn't always mean you'll lose your home. It is entirely possible that you will be able to keep your home. This is dependent upon the your home's value and whether or not you have taken a second mortgage. Check to see if you pass the requirements necessary to file for a homestead exemption.
You could see about filing for Chapter 13 personal bankruptcy. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. You can secure your home under Chapter 13 and pay your debts with a payment plan. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
If you can afford to pay your bills, bankruptcy is not a wise option. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.
When you are going through bankruptcy proceedings, it is sure to cause a great deal of stress. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Do not choose your attorney based solely on price. The cheapest attorney may not be the best, but the most expensive may not be the best either. Make sure people who have experienced bankruptcy give your referrals. It is even possible to watch a court hearing in order to see how well an attorney handles a case.
Before filing for bankruptcy, learn your rights. Some debt collectors like to say that you cannot file for bankruptcy on these debts. Only a few debts, including child support and tax liens, are ineligible for bankruptcy. If a collector tells you your debt won't be discharged in your bankruptcy and you know that it will, report the collector to the attorney general's office in your state.
How You Can Help Your Finances With Personal Bankruptcy People who fear bankruptcy are wise to do so, because it is never a pleasant experience. That said, the best antidote to fear is information, and this article has given you that in spades. Apply this advice to improve your situation for yourself and any loves ones.