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1 year ago

How To Decide When To File Personal Bankrupcy

Do you feel you have no more control over your debt, and are looking at a possible bankruptcy? Do not despair, you are not the only one. Many individuals have found personal bankruptcy imperative to solving their financial issues. The following article will provide you with some bankruptcy tips that you can use for guidance as you make your way through the process.

Ask yourself if filing for bankruptcy is truly your best option. You have other options available like consumer credit counselling services. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.

about Determine which assets won't be seized before filing for bankruptcy. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.

The best way to build your credit up after a bankruptcy is making all your payments on time. If this happens to you, think about applying for a couple of secured credit cards. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. In time, you might be granted unsecured credit again.

Before declaring bankruptcy, be sure you've weighed other options. If your debt is relatively low, you may be able to manage it with credit counseling. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.

Look into filing Chapter 13 bankruptcy. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. However, if you miss even one payment, the court will dismiss your entire case.

Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. However, it can be more difficult. Your trustee can help you acquire a new loan. You need to develop a budget and show that you will be able to afford the new payment. Be ready to justify the purchase that you need the loan for, too.

Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Be sure to check out a number of lawyers so that you will find one who is just right for you.

It can be easy for life to feel like it is spinning out of control when you are having financial troubles. Yet, you can take better control of your future and plan out how you are going to secure your finances, for life. Use this advice to create a better sense of command of your life.

1 year ago

Tips And Tricks For Filing Personal Bankruptcy

Going through bankruptcy is a stressful experience. The options available to you when your finances are challenged can be quite limited. Your future lending requirements will not be permanently hindered by bankruptcy, read on to find out why.

about :: It is important to understand your rights when filing bankruptcy. You might even be able to get back secured property that has been repossessed in the 90 days before filing. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Talk to a lawyer for help with the petition filing process.

When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. Don't allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.

Protect your house. Bankruptcy filings don't necessarily have to end in the loss of your home. You can still keep your home, it just depends on your specific situation and the value of your home. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.

Be sure that bankruptcy really is your best option. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. Filing a claim can take a long time and cause much stress. Having a bankruptcy on your record will hinder your ability to get credit in the future. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.

Be sure you know how Chapter 7 and Chapter 13 differ. Chapter 7 eliminates all debts. This type of bankruptcy ends any relationship you might have with creditors. In a Chapter 13, though, you'll be put on a payment plan for up to 60 months before being free of your debts. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.

Before you file for personal bankruptcy, weigh all of your options. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. Loan modification plans can be helpful for those facing foreclosure. The lender wants their money, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. When all is said and done, the creditors want their money, so sometimes it's best to deal with a repayment plan than with a bankruptcy debtor.

Think about all the choices available to you when you file for bankruptcy. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. If you are looking at foreclosure, think about a loan modification program. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.

People fear bankruptcy with good reason. It is a pretty daunting process to go through. If you understand all of the ins and outs of personal bankruptcy, you need not fear it. Utilize these tips immediately to improve your financial situation.