It can be a complicated process to file for personal bankruptcy. Several different types or “Chapters” of bankruptcy are available to you. Depending on the state of your finances and the type of debt that you have accrued, you may qualify for one type of bankruptcy, but not another. Prior to filing your petition, you really need to gain an understanding of how personal bankruptcies work. The following tips will help put you on the right path.
If you’re going to file bankruptcy, you need an attorney. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. Personal bankruptcy attorneys can help make sure everything is done properly.
Educate yourself about the bankruptcy process. You can increase your knowledge of the bankruptcy process by conversing with a bankruptcy attorney or by carrying out independent research on the internet. Whichever method you chose to increase your knowledge of the bankruptcy process, it is vital that you comprehend how filing for bankruptcy will affect yourself, your family and your creditors.
Start planning for your life after bankruptcy now. The entire process can be very overwhelming, and leave you feeling like you have few to little options. You begin rebuilding your financial future right away. Get solid advice from trusted sources, be prepared to work hard at it, and most importantly, don’t be afraid to dream again!
Consider filing Chapter 13 rather than Chapter 7, if you are facing foreclosure. A Chapter 13 bankruptcy allows you to create a restructured payment plan which includes your mortgage arrears. This will allow you to get your mortgage payments current, so that you won’t lose your home. Chapter 13 doesn’t require you to turn over property, so you don’t have to worry about the homestead exemption, either.
Many times, when a debtor files for Chapter 7 bankruptcy, their home can be protected. This is because of the homestead exemption. This exemption can protect the home, if the debtor owes below a certain threshold. Laws concerning this exemption do vary between states. Be sure to consult with a bankruptcy attorney before, assuming your home is safe from liquidation.
Research Chapter 13 bankruptcy, and see if it might be right for you. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. However, there are steps which must be taken to ensure you are within the law of bankruptcy. Your trustee must approve any new loans. Create a budget and prove that you will be able to afford it. An explanation of need will also be necessary.
Familiarize yourself with the requirements for different types of personal bankruptcy so, you can decide which type is most appropriate for you. Chapter 7 bankruptcy offers low-income debtors the ability to liquidate their assets to repay debts. Chapter 13 requires you to have a steady source of income so, that you can repay debts over time.
Be completely up front and honest about your situation and assets to avoid courts from dismissing your case. If the court catches you deliberately hiding assets or income, it can bar you from filing and even refilling for bankruptcy on debts that you have listed within the petition. This makes it impossible to remove debts.
When filing for bankruptcy, ensure you have listed all of your financial obligations. Neglecting to include the smallest of detail can lead to a petition being dismissed. It is better to have something on there that you are unsure about, rather than not include it at all and risk a dismissal. This can include side jobs, any vehicles to be counted as assets, and any loans you may currently have.
One thing to consider is that filing bankruptcy might be a better alternative to making late payments or missing payments completely. Though it will still mar your credit history for up to 10 years, the damage can be improved. This is why people call bankruptcy a fresh start.
Stay on top of your finances enough to file before the last possible moment. Your financial debt, and responsibilities will not solve themselves, nor will they be able to sit on the back burner forever. You must act decisively. Through knowledge of where your finances truly stand. Ignoring the problem will only result in greater issues.
You will now be aware that a good deal of thought should be applied before bankruptcy papers are filed. If it seems to make sense in light of your financial problems, you should seek an experienced bankruptcy attorney who can guide you toward a fresh, clean start!
