Personal Bankruptcy: Developing A Plan That Works For You

Nowadays, there are many people experiencing the woes of overwhelming debt. It seems that they can never pay their bills down, and they're constantly pursued by collection agencies and creditors. If you find yourself in this type of financial trouble, you may want to think about filing for bankruptcy. Read on to learn if bankruptcy is the best decision for you. Safeguard your home. Filing for bankruptcy doesn't automatically involve losing your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy. Do not make the assumption that every dollar of debt will be disscharged in a Chapter 7 case. Secured debt will have to be reaffirmed, meaning you must come up with a brand new agreement which shows a new payment plan, while other debts you cannot discharge. For instance, child support debts, court fines and alimony obligations cannot be discharged in Chapter 7 cases. A useful piece of advice is to diligently pay all bills every month, and try to pay more than minimum amounts due whenever possible. Many people pay the least amount possible since it feels the most comfortable, but it can make them go into debt quicker. Consider filing a Chapter 13 bankruptcy. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.Facebook Loan Be extremely cautious before taking on any new debt. You are likely to receive lots of offers for "fresh start" loans and credit cards pretty quickly after your bankruptcy is complete. There are normally the strings attached of high interest rates. You need to maintain tight control over your finances following bankruptcy; using unfavorable credit offers can land you in serious debt trouble all over again. When you file for bankruptcy, it doesn't mean that you will lose your assets. You can keep some personal property. Some included items are: electronics, household furnishings, clothing and even jewelry. It is even possible that your home and one car will be safe, depending on the laws in your state, your exact financial situation, and the Chapter which you file under. Be decisive at the correct moment in time. When it comes to filing for personal bankruptcy, timing is vital. Sometimes it is the best option to file quickly, whereas in other situations filing should be put off until the worst has already passed. Discuss your particular situation with your bankruptcy attorney to determine the best time to file. Some attorneys have a free phone service where creditors can be referred when they try to contact you in regards to a delinquent account. All you have to do is give the creditors this number. Then, they can call this number to confirm you are actually going through bankruptcy. This should put an end to their calls. Know the bankruptcy code backwards and forwards before filing. For instance, you may not be aware that a filer is forbidden from transferring assets from his or her name for one full year before the petition is filed. Not only that, but the filer cannot lawfully accrue additional debt just prior to filing.Emergency Loans Quick It is possible to re-file for bankruptcy if your first case is dismissed due to an error. Typically though, your only luxury is an automatic stay, lasting for 30 days from the date of filing, if it was dismissed. If you can justify your mistakes, the judge might decide to extend this stay so you can re-file again. You have undoubtedly gleaned from the text above that bankruptcy doesn't have to be a difficult process as long as you're informed. If you approach this with a clear mind and in the right way, it can give you the debt relief that you have longed for and will enable you to get back on your feet.