How You Can Find Out If Personal Bankruptcy Is The Best Option For You

by Terrence K. Magee on July 7, 2014

The economy today is in poor condition. The cycle of a tough economy leads to people are losing their jobs and going into debt. Debts can result in filing for bankruptcy, an outcome nobody ever wants.

If this applies to you, then learn about the laws where you live. Each state has its own laws regarding 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.

Instead of getting your lawyer from the yellow pages or on the Internet, ask around and get personal recommendations. There are a number of companies who may take advantage of your situation, so you must ascertain that your attorney can be trusted.

The person you file for bankruptcy has to have a complete and accurate picture of your financial condition.

Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics or other items that may have been repossessed. You may be able to recover repossessed property if they have been taken away from you within 90 days before you filed for bankruptcy. Speak with a lawyer that will be able to help you with guidance for the entire thing.

Stay up to date with any new bankruptcy if you decide to file. Bankruptcy law evolves constantly, and you need to be aware of any changes so your bankruptcy can be properly filed. Your state’s website will have up-to-date information about these changes.

Chapter 7

Be certain that you can differentiate between Chapter 7 and Chapter 13 differ. Chapter 7 eliminates all outstanding debts. All the things that tie you owe money to will go away. Chapter 13 bankruptcy allows for a five year repayment plan that takes 60 months to work with until the debts go away.

Consider Chapter 13 bankruptcy is an option.If you are receiving money on a regular basis and your unsecured debt is under $250,000 and you have consistent income, Chapter 13 may be right for you. This lasts for three to five years and after this, in which you’ll be discharged from unsecured debt.Keep in mind that even missing one payment can be enough for your case.

Even as the economy begins to recover, many people are still in difficult financial straits. There are some things that can be done to prevent filing for personal bankruptcy even for those who have no steady income. Simply remain persistent and positive. Opportunities will eventually come your way. Keep these thoughts close and it will enable you to have a better chance of avoiding the need to file bankruptcy. Best of luck.

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