Being in debt can be extremely stressful. It is possible for debt problems to escalate out of control, overnight. Unfortunately, it’s not easy to fix them when that happens. The following article will give you some pointers on what to do regarding bankruptcy if you are way over your head in debt.
Do what you can to keep your home. Filing bankruptcy does not necessarily mean that you will lose your house. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. If you choose Chapter 7, you are no longer responsible for joint debts. Your creditors can then come after your co-debtor for full repayment of the debt.
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 go through various hoops in order to be approved for any new loan type. Create a budget and prove you can afford a new loan payment. Also, you need to be ready to say why you’re going to need the item.
Know the rights that you have as you file for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a bill collector attempts to say their bill cannot be discharged, look it up. If they are wrong, report them.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. Often, with bankruptcy, come feelings of guilt, shame and worthlessness. However, having this feeling about yourself isn’t going to help anybody, and your health could even be compromised. A good way to deal with bankruptcy is to make sure that you keep a stiff upper lip.
There is a great amount of emotional and mental stress associated with filing for bankruptcy. If you want to protect yourself from stress, see to it that you hire a good attorney. Do not hire based on cost. There is no need to use an expensive attorney. The important thing that you must do is to get a good attorney. Speak to those around you at work or social settings, who have dealt with this. Make the most of the BBB and consultations with attorneys to increase your knowledge and decision-making ability. You might even go to a bankruptcy hearing to watch how a lawyer presents his case.
If you are considering bankruptcy, do not leave it until the last possible moment to do so. It is a mistake to ignore your financial troubles, hoping they will go away on their own. Debt can become a big problem rapidly, and if you fail to handle it, you can face foreclosure or garnishment of wages. When you find that you cannot take care of your debts anymore speak with an attorney for bankruptcy to talk things over.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. You need to know certain things, like the fact that it’s illegal to transfer any asserts 12 months before filing your claim. Other laws you need to know include debt-based regulations. You cannot increase debt via credit cards prior to filing a claim. Your finances basically have to remain frozen.
Create a list of all of your finances before filing for bankruptcy. Failing to disclose all of your financial information can cause your bankruptcy petition to be dismissed, or, at the very least, delayed. Even if you believe that certain financial information is inconsequential, do not avoid including it in your documentation. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
It can easy to be overwhelmed by life and feel as if you have lost control. Now you can see a few different ways that you can gain control over your finances if faced with personal bankruptcy. Having this information can change the way you face this challenge.