Cover Your Assets! Top Tips For Filing For Bankruptcy

by Dori Tery on November 8, 2015

The economy is not in very bad shape right now. The cycle of a tough economy is that many people are losing their jobs and mounting personal debt. Debts result in bankruptcy, something that is very bad.

If you’re in this situation, you should do some research about bankruptcy laws in your state. Each state has their own set of rules regarding bankruptcy.For instance, some states protect you from losing your home in a bankruptcy, while other states prohibit this. You should be aware of local bankruptcy laws for your state before filing.

When choosing a bankruptcy lawyer, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are way too many people ready to take advantage of financially-strapped individuals, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.

Chapter 13 Bankruptcy

Be sure you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy is intended to wipe out your debt.This type of bankruptcy ends any relationship with them will become no longer existent. Chapter 13 bankruptcy though will make you work out a payment plan to eliminate all your debts.

Be certain to speak with an attorney, himself, since they cannot give legal advice.

Don’t file for bankruptcy if you can afford to pay your debts. Bankruptcy might seem like a good way to get out of paying your bills, but it is a huge mark on your credit score and remains there for up to 10 years.

Look into all the alternatives to bankruptcy before you choose to file for bankruptcy. Loan modification can help you get out of this. The lender can help your financial situation by getting interest rates lowered, so they may be willing to forgive some fees, and in some cases will allow you to pay the loan over a longer period of time. When push comes to shove, creditors want their money, so sometimes it’s best to deal with a repayment plan than with a bankruptcy debtor.

In order for this to succeed, your car loan must be one with high interest, have a higher interest loan for it as well as a consistent work history.

Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, such as family members or business partners. However, if you had a co-debtor, which spell financial disaster for them.

This is considered fraud, and you may even be forced in paying all of it back to credit card companies.

Make a detailed list of all your debts. You need this list to file for bankruptcy, because this list is the starting point for a bankruptcy filing. Be sure to verify the exact amount of each debt you are claiming as being owed are true and correct.Don’t hurry through this process too fast because these amounts won’t get discharged if the information needs to be correct for you to receive a discharge.

Although the economy is slowly picking up, there are still many people left without jobs and a decent wage. Even if you do not have a lot of money, there are many ways to prevent filing for bankruptcy. Hopefully, after reading this article, you picked up on a few of the things that will help you avoid filing for bankruptcy. Good luck.

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