It is really scary to be way over your head in debt. There are times that having a small financial problem turns into a huge one. When you find yourself in such a position, it can be hard to know what to do. You should read ahead for great tips on how to face and handle a bankruptcy, when your debt is insurmountable.
As bankruptcy appears on the horizon, don’t take your savings or retirement accounts to try to pay off all your bills. You should never touch your retirement accounts, unless you have absolutely no choice. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
When it comes to informing your attorney about your case, don’t be fearful. Don’t assume that he’ll remember something from a month ago; tell him again. Don’t fear speaking up since it affects your case and future.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code has lists of various asset types that are exempt during the process. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. You wouldn’t want to unexpectedly lose any possessions you treasure.
Stay positive. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. 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. Speak to a lawyer who will be able to help you file the necessary paperwork.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To learn about any changes, search the Internet or contact your state’s legislative office.
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. In Chapter 7 bankruptcy, your debts are all eliminated. The ties with the creditor will be broken. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. However, if you miss even one payment, the court will dismiss your entire case.
Sometimes, life can throw you a curve ball that you were not expecting. Now you can see a few different ways that you can gain control over your finances if faced with personal bankruptcy. You can make a true difference in your day-to-day life by following the advice we have presented here.