helpful advice when filing for bankruptcy

Download Helpful Advice When Filing For Bankruptcy

Post on 17-Aug-2015




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  1. 1. Helpful Advice When Filing For Bankruptcy Deciding to file a bankruptcy petition is quite significant and should be done carefully and deliberately. If you take a few moments to check out the different tips and tactics listed in the text below, you can begin to realize how to navigate your way through the tough mine field that is bankruptcy. Find out all the information you can before filing for bankruptcy. Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. As with everything in life, the more you know about filing a claim, the better off you'll be. You can properly prepare when you know what you're preparing for. After you have declared bankruptcy, you may have a hard time being approved for unsecured credit. If this is so, apply for a secured card or two. This will show people that you are serious about getting your credit record back in order. After a certain time, you will then be able to acquire credit cards that are unsecured. Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust. Keep at it! You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Talk to a lawyer for help with the petition filing process. Learn of new laws prior to deciding to file for bankruptcy. Bankruptcy law evolves constantly, and it's important to stay up-to-date to ensure that you file properly. To learn about these changes, try contacting your state's legislation office or checking their website. If you're unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Be sure you go on the Internet and do your research to see what's best for you. If anything you see is unclear or doesn't make sense, go over it again with your attorney before making the final filing decision. Consider if Chapter 13 bankruptcy is an option. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case. If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. You can often lower your payment using Chapter 7 bankruptcy. There are qualifications, such as the loan being high interest and a good work record for this option. You can take out a mortgage or car loan while filing Chapter 13 bankruptcy. It's a bit more difficult,
  2. 2. though. You will need to secure the trustee's approval for any new debt obligation. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary. File when the time is perfectly right. Timing can be critical when it comes to personal bankruptcy cases. Sometimes you may want to wait to file and in other situations you may find it better to do it as soon as you can. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy. Be certain you are totally aware of the laws of bankruptcy before you file. You should not transfer your assets to anyone in the year preceding your bankruptcy filing. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing. Consider every option prior to filing for bankruptcy. You should consider credit counseling. You can get the help you need from a variety of non-profit credit counseling companies. They will liaise with those you owe money to and try to get better payment options opened to you. They collect payments from your and then pay the creditors. As this article has demonstrated, you do not have to go through bankruptcy. By going through the process correctly, the outcome will be further in your favor than it might otherwise have been. If you use the advice from this article, everything will be properly taken care of when you file for bankruptcy.