Making the decision to file for bankruptcy isn’t an easy one, but sometimes it can be the only way out of a mountain of debt. When going through this process it is best you have a lot of knowledge on what is about to take place. Keep reading to learn some valuable tips from someone who has stood in your shoes.
Getting unsecured credit post-bankruptcy will likely be difficult. If this is so, apply for a secured card or two. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. In time, it may be possible for you to obtain unsecured cards.
If you are considering filing for bankruptcy you definitely need to hire an attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Look for an attorney until you find one you feel comfortable with.
Your most important concern is to protect your home. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! 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. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Learn what you can about Chapter 13 bankruptcies. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
While the idea of bankruptcy sounds terrible, sometimes you can’t avoid it. After reading this article, you now know how people who have actually experienced bankruptcy got through the process. You will find that every journey in life goes more smoothly if you heed the advice of those who go before you, and this one is no different.