How To FIle Bankruptcy With No Trouble

by Dori Tery on December 20, 2015

Filing for personal bankruptcy is quite a simple process. There are different types of bankruptcy, and the kind you select depends on your individual financial picture and what types of debt you have. The tips included in this article should give you some direction as you go through the process of deciding to file and filing for you.

If this is the case for you, start familiarizing yourself with your state laws. Different states have different laws when it comes to bankruptcy. For example, some states protect you from losing your home in a bankruptcy, but not in others. You should be aware of local bankruptcy laws for your state before filing for bankruptcy.

Retirement funds should never be accessed unless all costs. If you do have to dig into your savings, make sure that you save some to ensure that you are financially secure in the future.

The federal statutes covering bankruptcy can tell you exactly which assets considered exempt from forfeiture to pay off creditors. If you don’t read this list, things could get ugly.

Chapter 7

Be sure you can differentiate between Chapter 7 and Chapter 13 differ. Chapter 7 involves the elimination of all outstanding debts. All the people you owe money to will go away. Chapter 13 bankruptcy though will make you work out a five year repayment plan to eliminate all your debts.

Filing for bankruptcy does not mean you will lose your house. You might be able to keep your home, for instance, such as your home decreasing in value or having a second mortgage. You are still going to want to check into homestead exemption because it may allow you to keep your home.

Be sure that bankruptcy truly is your best option. You may find consolidating your debt or availing yourself of some other remedy. It can be quite stressful to undergo the lengthy process of filing for bankruptcy.It will have a long-lasting effect of your future credit for the next few years. This is why you must make sure bankruptcy is your other debt relief options first.

Chapter 13 Bankruptcy

Consider if Chapter 13 bankruptcy for your filing. If you have a regular source of income and less than $250,000, you can file for Chapter 13 bankruptcy. This plan normally lasts from three to five years, your unsecured debt will be discharged.Keep in mind that even missing one payment can be enough for your case.

In order for this to be considered, you must have bought your car in excess of 910 days before filing, have a higher interest loan for it as well as a consistent work history.

It is possible to get an auto loan or mortgage during the repayment period for Chapter 13 case remains active. You need to contact your trustee to get approval for a new loan. You will need to make a budget and prove that you can handle paying back the new loan. You will also need to be prepared to answer questions about your need for the new item.

Now after reading the above article you see that bankruptcy must be thought over extremely carefully before going through with it. After weighing all of your options, if you conclude that bankruptcy is the best option for your particular situation, be sure to hire a competent attorney. Follow the advice given in this article to get through this rough time and move on to a more secure financial future.

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