If you are faced with a repossession, the whole process can feel very intimidating. When your debt situation gets serious enough, you may want to consider personal bankruptcy as a way to save yourself. Keep reading for useful tips to help you through the process.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this sounds familiar, you should read up on the bankruptcy laws in your state. You will find that each state has their own bankruptcy laws. Your home is safe in some states, but in others it’s not. Do not file before learning about the bankruptcy laws in your state.
It is important to remind your lawyer of any details that may be important to your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. Speak up, because it is your future on the line.
You might experience trouble with getting unsecured credit after filing for bankruptcy. If you find that to be the situation, consider requesting secured cards. This will allow you to start building a good credit history while minimizing the bank’s risk. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. The Bankruptcy Code has lists of various asset types that are exempt during the process. Many belongings may become eligible for repossession or seizure after filing for bankruptcy. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Don’t give up. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Consult with a lawyer who is able to assist you in the filing of your petition.
Don’t file for bankruptcy until your represented by an attorney. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, you want to look into credit counseling. This is the best option for small debts. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
You could see about filing for Chapter 13 personal bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Although personal bankruptcy remains an option, look into other avenues before making the decision to pursue it. Bear in mind the fact that a number of services for debt consolidation are actually fraudulent and will cause you more problems. Keep the advice you read in mind so that you’re able to make smart choices and stay out of debt in the future.