Advice On And Options For Declaring Personal Bankruptcy
Many people find themselves in financial trouble every now and then. It can feel hopeless and like the end of the world. This is because people don’t realize that filing bankruptcy is a viable solution to their problems. Filing bankruptcy is not has hard as we have been led to believe.
Find out the real reason you are filing for bankruptcy. What happened in your life that brought you to this place? What do you need to do to make sure that you can move on? What actions do you need to take before you can be sure that this will never happen again?
Make sure you list all of your assets and all of your creditors when filing for bankruptcy. If you are dishonest, your trustee will discover it, and your bankruptcy case can be dismissed with cause. The more you disclose, the more likely you are to get the outcome that you are looking for.
When you file for bankruptcy, remember to include all credit and debit accounts. You should even include those credit cards that do not have a balance. Some people leave these out because they wish to keep these accounts open. In addition, you need to include all the information about any auto loans that you may have.
Stop using your credit card. If you are filing for bankruptcy, refrain from using your credit card a few months in advance. A court will, generally, frown upon any frivolous charges showing up on your personal bank statements. Try to keep in mind how your bank activity will appear to a judge.
Chapter 7 Bankruptcy
Get a secured credit card after filing for Chapter 7 bankruptcy. A secured card requires you to put down money in order to open the account. However, if you use the card responsibly and pay it off every month, you can raise your credit score. So, within a few years of filing, your credit will be good enough to get you into an apartment or allow you to purchase a new vehicle.
Decide which chapter of bankruptcy you need to file so you can retain as much of your assets as possible. Depending on your situation, filing a chapter 7 bankruptcy may be right for you, as you are able to keep most of your assets. However, other types such as chapter 13 may be better since you can restructure your debt into affordable payments.
Think carefully before filing Chapter 7 bankruptcy. While Chapter 7 bankruptcy (irreversible insolvency) will effectively get rid of all your debts, allowing you to start afresh, it will also be on your credit report for 10 years. This will greatly reduce your chances of getting any type of credit in the future. Consult with a bankruptcy attorney – he or she may be able to suggest a different form of debt relief that won’t have such a damaging effect on your credit.
Continue to pay certain bills. Once you file for Chapter 7 bankruptcy, you won’t receive any more collection calls, and you may cease to receive certain bills. Remember that you are still under obligation to pay for your ‘secured possessions’, such as your home or vehicle, or you may lose them.
If you have filed for Chapter 13 bankruptcy, but realize that you are unable to meet your payment obligations, you may be able to convert to a Chapter 7 bankruptcy instead. To qualify for the conversion, you must never have converted your bankruptcy before and also undergo a financial evaluation. The laws surrounding this process are always changing, so be sure to talk with an attorney who can help you navigate this process.
Chapter 11 Bankruptcy
If you are planning on filing for chapter 11 bankruptcy, it is important that you hire a lawyer. Working with a lawyer is necessary, because filing for chapter 11 bankruptcy is much, much, more complex than filing for other bankruptcies. A lawyer will make sure that your rights are protected. He can guide you through the bankruptcy process, providing valuable advice.
Chapter 13 Bankruptcy
Try to file for Chapter 13 bankruptcy rather, than Chapter 7 if you can possibly do so. Chapter 13 is less detrimental to your credit because, you pay some of your debts back via a structured repayment plan rather than liquidating assets. In addition, you don’t risk losing property in a Chapter 13 case.
Make sure you are current on your taxes before filing for Chapter 13 bankruptcy. You can’t qualify if you’re missing any tax returns from the past five years. If you are not current at the time you file, talk to your attorney about filing a motion so that you can get additional time to file taxes before your case is considered.
If you have to get a new car while in Chapter 13 bankruptcy, don’t try to get approval for the most expensive car on the market. Your trustee won’t approve your plan if it includes a luxury vehicle, and you probably can’t afford a high car note anyway. Stick with a reliable, but cheap vehicle, to ensure you can afford your new purchase.
If you act early enough, you may be able to take advantage of Chapter 13 bankruptcy, instead of Chapter 7. Chapter 7 is the traditional “liquidation” bankruptcy, which will involve selling off your assets. In contrast, Chapter 13 is a repayment bankruptcy. You will have to pay off a portion of your debt, but you can hang onto your property.
Decide whether you want to file for Chapter 7, or Chapter 13 bankruptcy. As an individual, you may do either one. Find out as much as you can about each type of bankruptcy, so you are able to make a choice that you can live with in the future.
Consider filing Chapter 13 rather than Chapter 7, if you are facing foreclosure. A Chapter 13 bankruptcy allows you to create a restructured payment plan which includes your mortgage arrears. This will allow you to get your mortgage payments current, so that you won’t lose your home. Chapter 13 doesn’t require you to turn over property, so you don’t have to worry about the homestead exemption, either.
Now that you have reached the end of this article, you can see that you do have some recourse if you are in over your head. You have the ability to file for bankruptcy, thanks to the law. Use these bankruptcy tips to confidently start the process and get a fresh start.