If you are considering filing for bankruptcy, your life probably hasn’t been so great recently, but that doesn’t mean things can’t improve once you file. The main point is to start over financially. The following article will give you advice to help make process of filing go smoothly.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Don’t file for bankruptcy until your represented by an attorney. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Seek a less serious option prior to filing for bankruptcy. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.
Should I File Chapter 7 or Chapter 13?
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Chapter 7, for example, will wipe away every one of your outstanding debts. Any ties you have concerning creditors will definitely be dissolved. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation..
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Make sure that you really need to file for bankruptcy. Perhaps consolidating your existing debt can make it easier to manage. It is not a quick and easy process to file for bankruptcy. Having a bankruptcy on your record will hinder your ability to get credit in the future. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Chapter 13 Bankruptcy
Learn what you can about Chapter 13 bankruptcies. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Keep in mind that missed payments will trigger dismissal of your case.
In conclusion, most circumstance that lead to bankruptcy are not positive. That said, filing for bankruptcy can be a positive turning point in your life. As a matter of fact, if you put the ideas in this article into play, you can let bankruptcy proceedings a pivotal moment in your existence towards a brighter future.