There is not much scarier than a mountain of debt. One day you're looking at a little mole hill; the next day you're staring down a mountain. It doesn't take long at all before the debt becomes too much to handle. When you find yourself in such a position, it can be hard to know what to do. The following article will give you some pointers on what to do regarding bankruptcy if you are way over your head in debt.
One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. You can learn a lot on the U.S. Some valuable resources include the U.S. Dept of Justice and American Bankruptcy Institute. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
Be certain you are making the right choice before you file for bankruptcy. Other available options include consumer credit counseling. 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.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If so, apply for a secured credit card. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don't read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Don't pay for an attorney consultation and ask him or her anything you want to know. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. 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.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Under Chapter 7 type bankruptcy, all debts are forgiven. You will no longer be liable for any money that you owe to your creditors. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. Both options have advantages and drawbacks, so do your research before deciding.
Sometimes in life things just happen which are out of your control. The article above has some powerful suggestions to get things back in control and manage the issues you face when filling for bankruptcy. Use what you've learned here to give yourself a second chance.