Monday, August 13, 2012

Is Personal Bankruptcy The Right Choice For Me - HWM Personal ...

Bankruptcy may be hard for people to file for, but it may be necessary, sometimes. The best way to approach the situation is with an education about the process. In the following article you can pick up some handy advice based on the experiences of other people who have had to deal with the bankruptcy process.

Before you file for bankruptcy, make sure you absolutely need to. Some people have great luck with handling debt with debt consolidation, which means taking out only one loan to pay off many loans. The bankruptcy process takes forever to finish and is very nerve-wracking. It will also limit your ability to get credit for the next few years. Because of this, you should be sure that bankruptcy is your only option before you file.

If you are going to be filing for bankruptcy, think about filing Chapter 13. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.

TIP! Make sure you understand your rights as you file for bankruptcy. Certain unscrupulous creditors will try to convince you that certain debts can?t be discharged in bankruptcy.

If you plan to file bankruptcy, do not continue using credit cards. You may be very tempted to buy a lot of stuff; however, this will not make the courts happy. You need to exercise all of the financial responsibility you can. It?s a good time to start developing good financial habits for the future.

Financial Information

Be certain to be transparent about all of your financial information when the filing of for personal bankruptcy. Forgetting anything can cause a delay, or even a dismissal. All financial information needs to be considered by the court. This might take the form of odd jobs, extra cars and outstanding personal loans.

Do what you can to keep your home. Filing for bankruptcy doesn?t automatically involve losing your home. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.

TIP! After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. If you find yourself in this situation, you may want to think about getting a secured card or two.

If you find yourself getting depressed over filing for bankruptcy it is a good idea to talk to others in the same situation. There is a lot of stress associated with bankruptcy, and it can be hard to connect with your friends while you?re going through it. If you join the right online group, however, you will be able to find support and advice from others who are, or were, in your situation.

Prior to declaring bankruptcy you really need to be sure that you?ve exhausted all your other options first. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.

If you about to file for bankruptcy, you will probably be frequently speaking with creditors. Always remember to get written confirmation of any agreements you are able to reach with them. Offers of flexibility received from your creditors can greatly affect your bankruptcy case, but they must be in written form.

Before you file for bankruptcy, be sure you know how to properly repay your debts. The laws surrounding bankruptcy often prohibit paying back certain creditors up to ninety days prior to filing, and family members up to a year! Make sure you have a complete understanding of what is occurring prior to making any final decisions.

TIP! After filing for bankruptcy, many individuals vow they will avoid the use of credit cards and all forms of credit. This isn?t wise since you need to use credit to build credit.

Know that bankruptcy in the end may be your best bet for restoring your credit, as opposed to the continuous pattern of missing or making late payments on what you owe. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. Getting a fresh start is one benefit of bankruptcy.

A good tip to get creditors to leave you alone directly is to contact an attorney that will handle creditors for you via a phone service. By contacting the phone number that you supply, your creditors can get confirmation that a bankruptcy filing incorporating their debt is underway. This can stop collectors from harassing you at home.

If you can, get a word-of-mouth referral for a lawyer. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer?s true capabilities.

Before you file for bankruptcy, you must commit to acting more responsible with your finances. It is important not to make your debt larger just before bankruptcy. Creditors and even judges look at your current and past history when they are going through your bankruptcy paperwork. Having recent good financial behavior, regardless of how short of a time period, is better than no good behavior at all.

TIP! Before filing for bankruptcy, hire a qualified attorney. Bankruptcy is a complex process, and you probably don?t know all the information that is required to navigate it.

Do your homework so you thoroughly understand the laws pertaining to bankruptcy before you file. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Maxing out your credit cards immediately before filing is also illegal.

Assess your documentation for accuracy. You might have an attorney fill out the paperwork, but the court will penalize you, not the attorney, if there is inaccurate information filed on your behalf. Remember that you are not the attorney?s only client, so you must be an advocate for yourself. Be certain to double check all documents your lawyer presents you with. Make sure that all of the information is presented correctly.

Do not be afraid to remind your attorney of important specifics of your case. Inaccurate or incomplete information can lead to your petition being denied. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.

Don?t wait until the last minute to file bankruptcy. Some folks ignore financial difficulties for a long time, and this can be disastrous. Personal debts can spiral out of control very quickly, and if you don?t take care of them, you may find yourself facing foreclosure or wage garnishment. As soon as you realize your debts far outweigh your income, call a bankruptcy lawyer to talk about what your choices are.

Chapter 7

Know the differences between Chapter 7 and Chapter 13 bankruptcy. All debt will be eliminated with Chapter 7. Any ties that you have with creditors will be dissolved. 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.

There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Weigh all the information you can find on- and off-line to make an educated decision. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.

Don?t show up to your meeting with your bankruptcy lawyer empty handed. Take some time to list all questions and concerns you have before your first meeting together. An attorney?s time can be very costly. To save yourself trouble and money, make a list of your questions and concerns before consulting your lawyer. It is even better if you do your own research so that you know exactly what you need to do to have a successful bankruptcy.

TIP! Don?t just give your paperwork to your lawyer and not follow up afterward. Your lawyer is an expert on bankruptcy, but remember that you are making a decision that could impact the rest of your life.

Although people don?t want to file bankruptcy, it?s sometimes necessary. Since you?ve read the advice found in this article, you know what has worked for others who have filed for bankruptcy in the past. Spending some time learning for others who have gone through the same thing reduce some of your stress

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