It is really scary to be way over your head in debt. Things can quickly add up and before you know it, the situation is completely out of control. You may realize that your options at this point are limited. You might consider bankruptcy, look through this article and find out why.
Ask yourself if filing for bankruptcy is the right thing to do. You have other options available like consumer credit counselling services. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Click here! It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Don't withhold information, and create a smart way of coping with the reality of the situation.
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. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Talk to your lawyer to find out how to go about properly filing a petition.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Chapter 7 involves the elimination of all of your debt. All happenings with creditors will disappear. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. Both options have advantages and drawbacks, so do your research before deciding.
Consider if Chapter 13 bankruptcy is an option. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that if you even miss one payment that's due under this plan, the court could dismiss the whole case.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Research them online to see the positive and negative aspects of each one. If something doesn't make sense to you, go over it with your lawyer prior to choosing which one to file.
As you can see by now, many people find themselves pondering whether or not to file bankruptcy. Having read this article, you should feel better prepared to navigate this process. Apply the preceding advice in order to facilitate a seamless bankruptcy case.