Tips To Consider If You Are Thinking About Filing For Bankruptcy

by Dori Tery on February 11, 2016

Many people think people who file for bankruptcy are deadbeats, yet they are also as quick to change their mind if they are suddenly in that boat. A simple change of circumstances, like a major medical emergency, can quickly change a life to the point where bankruptcy may be the only way out. If this situation proves to be yours, the following article will be of great assistance.

If you’re in this situation, start familiarizing yourself with your state laws. Each state has their own set of rules regarding bankruptcy. For example, 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 for bankruptcy.

You can find services like consumer credit counselling services. Bankruptcy is a permanent part of your credit, you should search through every available option first, to help try and limit the damage to your credit.

Filing bankruptcy doesn’t automatically involve losing your house. You might be able to keep your home, contingent on certain factors, if you have two mortgages or if your home has lost its value.You are still going to want to check out the homestead exemption either way just in case.

Understand the differences between Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Take the time to find out about each one online, and then figure out which one will be best for your particular situation.If the information you read is unclear to you, go over it with your lawyer so that you can make the best decision.

Before filing bankruptcy ensure that the need is there. You might be better off consolidating your debt may be simpler. It can be quite stressful to undergo the lengthy process to file for bankruptcy. It will also limit your ability to secure credit in the future. This is why you explore your last resort.

Look at all of your options before you choose to file for bankruptcy. Loan modification can help if you get out of foreclosure.The lender wants their money, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. When push comes to shove, the 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, you must have bought your car in excess of 910 days before filing, you need a solid work history and the car should have been bought 910 days or more prior to you filing.

Know your rights that you have as you file for bankruptcy.Some bill collectors will try to tell you that your debts can’t be bankrupted. There are not many debts that can not be bankrupted, child support and student loans. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, report the collection agency to the attorney general’s office in your state.

For example, you are not allowed to move assets from your name to someone else’s for a year before you file.

Make sure that you disclose every bit of financial information on your debts before filing. If you don’t do this, your filing could be rejected. This includes income from second or part time jobs, vehicles you own and loans you still owe money on.

Once you turn over every other stone and have yielded no answers, then you might find bankruptcy necessary. If you find that you have no other choice, then do your best to not let bankruptcy to be something to fear. This article will give you the information that you need to know.

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