Navigate Financial Difficulties With These Personal Bankruptcy Tips

by Dori Tery on April 1, 2016

You should never take the decision to file bankruptcy lightly. It is very important that you educate yourself on the entire bankruptcy filing process. Apply the advice from this article to have guidance in the right path.

Avoid ever touching your retirement funds until you have no other choice. Although it is quite normal to use some of your savings, you should not use up all of it right now and jeopardize the financial security of your future.

You may still have trouble receiving any unsecured credit after filing for bankruptcy. If you find that to be the situation, then try applying for a coupe of secured cards. This will show people that you’re serious about getting your credit record back in order. After a certain time, you are going to be able to have unsecured credit cards too.

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 should be able to recover repossessed property if they have been taken away from you within 90 days ago. Consult with a lawyer that can walk you in the filing of your petition.

Before declaring bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For instance, you may want to consider a credit counseling plan if you have small debts. You can also talk to creditors and ask them to lower payments, just be sure any debt modifications you agree to are written and that you have a copy.

Be certain you talk to the lawyer, not their paralegal or law clerk, since they cannot give legal advice.

Filing for bankruptcy does not always mean that you will end up losing your house. Depending on if your home’s value has gone down or if it has a second mortgage, you may very well end up being able to keep your home. You are still going to want to check out the homestead exemption because it may allow you to keep your home.

Understand the differences between a Chapter 7 bankruptcy and Chapter 13 bankruptcy. Take the time to learn about them extensively, and look at the advantages and disadvantages of each. If something doesn’t make sense to you, talk to your attorney before making that serious decision.

Look into all of your options prior to deciding to file for bankruptcy. Loan modification plans on home loans are dealing with foreclosure. The lender can help your financial situation by getting interest rates lowered, dropping late charges, change the loan term or reduce interest as ways of assisting you.When all is said and done, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.

In order for this to succeed, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.

Financial Information

Make a list of financial information on your bankruptcy petition.If the court thinks you are attempting to conceal information, your filing could be rejected. This financial information may include income from side jobs, any vehicles you have and any outstanding loans.

This is considered fraud, and you may be held responsible for the balances despite your bankruptcy filing.

Some lawyers offer a phone line so creditors can call instead of you. This can stop collectors from harassing you again.

Make sure that the lawyer you hire is an experienced bankruptcy lawyer.There are a slew of lawyers available who will be happy to take on your case.

Clearly, when it comes to filing for personal bankruptcy, there are many options. Don’t let all the information and regulations surrounding bankruptcy overwhelm you. Take a deep breath and let the information sink in. You will make better decisions by doing this.

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