Whatever led you to declare bankruptcy is probably very sad, but that doesn’t mean that you can’t have a better life after bankruptcy. Once you have completed the bankruptcy process you can begin anew with a clean slate. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this is the case for you, you should begin to investigate the legislation in your state. The laws governing bankruptcy vary from state to state. Your house is safe in certain states; however, in other states, it isn’t. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Learn as much as you can about bankruptcy by going to informational websites. The United States Department of Justice and American Bankruptcy Institute are two such places to look. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If this sounds like you, start familiarizing yourself with your state laws. Different states use different laws when it comes to bankruptcy. In some areas, your residence may be completely exempt, but in others, it will not be. You should be familiar with the laws for your state before filing for bankruptcy.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. Look into other options, such as consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
You can take steps to hang onto your house. It isn’t inevitable that you will lose your house when you file for bankruptcy. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Always be honest and forthright when it comes to your bankruptcy petition. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Research Chapter 13 bankruptcy, and see if it might be right for you. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $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. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Judging from the information contained within the article alone, you can now see that there are ways to get out from under the piling debt. The initial process might be difficult and draining, but there’s something special waiting on the other side. If you put the ideas you learned in this article into practice, you can write a whole new financial story and live happily ever after.
If bankruptcy is an option for you, secure the services of an attorney. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Do you want to pay off your debt and be financially free for the first time in a long time? Regardless what income level you’re comfortable with, the most important factor to make it a reality is to adjust your mindset. Orrin Woodward is one of the foremost authority in balancing different aspects of life to build stronger, sustainable, and repeatable profitable business from home. He is also one of the co-founders of the LIFE business.