What You Should Know About Personal Bankruptcy

by Terrence K. Magee on February 3, 2014

Filing for bankruptcy is never a fun thing to do. Use the article that follows as a way to learn how you can avoid bankruptcy.

Always be honest when it comes to your bankruptcy petition.

Instead of relying on random selections from the phone book or Internet, try your hardest to find one with a personal recommendation. 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.

The Bankruptcy Code lists assets considered exempt from bankruptcy. If you neglect this important step, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.

The professional that helps you choose to file for bankruptcy has to have a complete and accurate picture of your finances.

Before making the decision to file for bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, if you only have a little bit of debt, try a type of consumer counseling program. You may also find success in negotiating lower payment arrangements yourself, but make sure that you get written records of any debt modifications to which you agree.

Filing bankruptcy does not mean you have to lose your home. Depending on if your home’s value has gone down or if it has a second mortgage, you may end up keeping it. You may also want to check into homestead exemption either way just in case.

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 of filing for bankruptcy. It will also limit your ability to get credit in the future. This is why you explore your other debt relief options first.

Chapter 13 Bankruptcy

Consider if Chapter 13 bankruptcy for your filing. If you currently have some income and don’t have more than $250k in debt, Chapter 13 bankruptcy is something you are able to file for. This lasts for three to five years and after this, in which you’ll be discharged from unsecured debt.Keep in mind that missed payments will trigger dismissal of your whole case to get dismissed.

As you can see, you don’t need to surrender to bankruptcy. The guidance from this piece can serve as a road map for steering clear of bankruptcy. Start using what you learned today and see how much of a change you can make in your life, so that you do not have to harm your credit history.

This information served as a great tutorial regarding What Is Chapter 13 Bankruptcy. You have found the information you require to get going, right here in this article. Now is the time to take the knowledge you have gained and apply it to your life!

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