Lots of people have to claim bankruptcy when their bills are larger than their income. Study the laws in you state to learn what you need to do and what your options are. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. In some areas, your residence may be completely exempt, but in others, it will not be. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Don't hire an attorney who fails to address all your concerns and questions. It is not necessary to make a final decision right away. Take the time to meet with a number of attorneys.
Before you decide to declare bankruptcy, make sure that a less-drastic solution isn't more appropriate. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. It may also be possible to get lower payments, but if you do, be sure to obtain records for any consensual debt modifications.
Understand the differences between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Before making any decisions, discuss the information you have learned with your lawyer.
Investigate your other alternatives before you decide you have to go with bankruptcy. You may find consolidating your debt may be simpler. The bankruptcy process takes forever to finish and is very nerve-wracking. It will have a major effect on your credit as time goes on. This is why you must make sure bankruptcy is your last resort.
Consider Chapter 13 bankruptcy for your filing. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. However, if you miss even one payment, the court will dismiss your entire case.
In conclusion, most circumstance that lead to bankruptcy are not positive. Even though that is the case, you should not allow it to depress you in any way. As a matter of fact, if you put the ideas in this article into play, you can let bankruptcy proceedings a pivotal moment in your existence towards a brighter future.
