Bankruptcy Advice That Every Individual Should Know
You've heard it before and you'll hear it again--the economy is in rough shape. The difficult economic circumstances have caused increasing levels of unemployment and personal debt. The unfortunate result of this is that more and more people are filing for personal bankruptcy. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
Consider filing for Chapter 13 bankruptcy. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Consolidate a list of what you owe. This is what you will use when you file for bankruptcy, so make sure every debt you owe is on the list. Go over all your financial records and do not forget anything. Don't hurry through this task; the information needs to be correct for you to receive a discharge.
Do not use the word "shame", if you go bankrupt. For many people, bankruptcy is a source of guilt and feelings of worthlessness. But, there is nothing positive about feeling this way and it can actually affect your mental state. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.
There is always the possibility that your petition for bankruptcy may be denied. It's a good idea to keep this possibility in mind. By considering the worst-case scenario that could occur following a failed filing, (e.g. home foreclosure or repossession of your assets) you can make contingency plans and be better prepared.
Ways To Escape Personal Bankruptcy And Restore Your Finances A great tip to remember if you have filed for Chapter 13 is that you will still be able to receive a loan, so you shouldn't refrain from trying. But, it could be harder. You will need to secure the trustee's approval for any new debt obligation. Create a budget and prove that you will be able to afford it. An explanation of need will also be necessary.
Before filing for personal bankruptcy, make sure you are doing the right thing. There are other options available, such as credit counseling for consumers. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Some attorneys may offer to contact creditors in regard to any delinquent accounts in your name. You just provide the number, and they call to confirm that the debt is part of your bankruptcy. This should keep the collector from calling you again.
Before you file for bankruptcy, look at your situation carefully. Review your outstanding debt load and determine which obligations might be eligible for a bankruptcy discharge. Credit card and other kinds of debt with non-essentials are not always discharged if the debt was accrued within ninety days of filing. Check with your state's bankruptcy laws to be sure.
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.