July 29, 2020 - mediadealer - Money Hacks - 1,403 views
If you have been threatened by repossession of your possessions, it is time to think about filing for bankruptcy. When your debt situation gets serious enough, you may want to consider personal bankruptcy as a way to save yourself. Continue reading for some useful tips to help guide you through this potentially stressful process.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. You should never touch your retirement accounts, unless you have absolutely no choice. Your savings accounts offer valuable financial security so try to leave them intact.
Learn of new laws prior to deciding to file for bankruptcy. Laws are subject to change, and it’s important that you’re educating yourself about current code only. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. Chapter 7 involves the elimination of all of your debt. All the things that tie you to creditors will go away. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Meet with a few attorneys who offer free consultations before hiring one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
Do what you can to keep your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. Filing under Chapter 7 is usually a good way to lower your payments. In order for this to be considered, 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.
Think about any co-debtors you have prior to filing for Chapter 7 bankruptcy. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. However, creditors can demand co-debtors pay the amount in full.
During a Chapter 13 bankruptcy, you may still be able to get a mortgage or car loan. It’s a bit more difficult, though. You need to contact your trustee so you can get approved for a new loan. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. Also, you need to be ready to say why you’re going to need the item.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. It is not uncommon for bankruptcies to elicit feelings of guilt, remorse and embarrassment. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. The best way of dealing with bankruptcy is to keep a positive attitude during this time of financial upset.
Think about other options before you file for bankruptcy. Consider credit counseling. This does not necessarily have to cost you, as there are some organizations that will assist you for free. They will liaise with those you owe money to and try to get better payment options opened to you. You can even pay your creditors through them.
If you intend to file bankruptcy soon, you may want to discontinue paying all debts. Bankruptcy rules generally outlaw repayment of creditors in the 90 days leading up to a bankruptcy filing, a period that is extended to one year when it comes to payments made to family members. Do your research rather than making financial decisions blindly.
Do a check of your credit report from all the top companies who report on consumer credit after two or three months have passed following your bankruptcy. Check to make sure your credit report accurately reflects your recently discharged debts. If there are discrepancies, correct them immediately in order to you can start repairing your credit.
Remember to include all the debt that you want to eliminate when you file your bankruptcy papers. If you forget to include any of your debts in the filing, you lose the chance to discharge them. You should have everything in writing with dates and signatures to prove that your debts have been discharged, or you could be asked to pay these debts.
If you start a new or second job, that doesn’t mean you should stop filing for bankruptcy! Filing still might be the best thing to do. Choosing when to file can have a big impact. If you file before gaining more income, you have a better chance of having your debt discharged.
One common contributing factor for bankruptcy is the financial consequences of filing for divorce, so make sure to consider your plans carefully. When many people divorce, they have to pursue a bankruptcy when the realities of the costs comes to light. If divorce is imminent in your future, then you may want to plan your finances accordingly so you are not forced to file for bankruptcy.
Filing for bankruptcy is a possibility, but you should consider other options first. Keep in mind that many scam debt-consolidation services have sprung up since the increase in bankruptcies, so do your homework before choosing one. Keep the advice from this piece in mind to help you make smart financial decisions.
If you must have money fast, a payday loan may be just what you are looking for. Payday advances are sometimes lifesavers, but lik....
Do you know what debt consolidation is? You may have a simple understanding of the topic, but did you know that it could help you?....
Having bad credit is an extremely annoying issue to deal with. It can make you feel like you are in debtors' prison with no hope o....
Filing for bankruptcy is a very important decision and one that shouldn't be taken lightly. Read the suggestions below to learn wh....
You must be logged in to post a comment.