Filing for bankruptcy will be a very crucial decision, so don’t take it lightly. By reading this article, you will have a better understanding of all that filing for bankruptcy entails. Educate yourself as much as possible prior to taking action.
Most people end up filing for personal bankruptcy because they owe more than they make. If you have unmanageable debt, you need to familiarize yourself with regional bankruptcy laws. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. Some states protect your home, and others do not. It is best to become familiar with your state’s laws regarding bankruptcy before you take the steps to file.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. You should never touch your retirement accounts, unless you have absolutely no choice. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
Once you file for bankruptcy, you will have a hard time getting loans or credits. If that’s the case, it is beneficial to apply for one or even two secured cards. When you do this, it shows your determination to fix your credit history. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
If you’re going to file bankruptcy, you need an attorney. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. A qualified bankruptcy attorney can guide you through the filing process.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Consider filing a Chapter 13 bankruptcy. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Expect to make payments for up to 5 years before your unsecured debts are discharged. However, if you were to miss a payment, the court would dismiss your case right away.
As the preceding article suggests, bankruptcy is not something that magically happens. By going through the process correctly, the outcome will be further in your favor than it might otherwise have been. By using the above suggestions, you will be sure that all your Ts are crossed and all your Is are dotted when it comes to filing for bankruptcy.