Having Financial Issues? Have You Considered Bankruptcy?

June 12, 2013

TIP! The best way to build your credit up after a bankruptcy is making all your payments on time. Look into getting a secured credit card in order to get back on your feet with building credit.

It’s normal to feel angry and frustrated when going through bankruptcy. They are very worried about paying bills and living day-to-day. By reading this article, you will soon realize that bankruptcy is not the end of the road for your financial future.

TIP! Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is the best option to erase your debts for good.

Generally bankruptcy is filed when a person is facing insurmountable debt. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Bankruptcy laws vary from state to state so it is important to do your research. In a few states, they see to it that your house is protected. This is not the case when it comes to other states. Be sure to have some familiarity with the law in your jurisdiction.

TIP! Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice.

If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. Though you may have to break into your savings, keep some available for difficult times. You will be glad you did.

TIP! Protect your house. It isn’t inevitable that you will lose your house when you file for bankruptcy.

Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.

TIP! Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Go to a reputable website and research the benefits and detriments of each type of bankruptcy.

No matter what, don’t give up! You might even be able to get back secured property that has been repossessed in the 90 days before filing. 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. Get help from your lawyer to file a petition so you can get your items back.

TIP! Look into filing Chapter 13 bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you.

Filing for bankruptcy isn’t the end of the world. It can be disturbing at first, but it is possible to overcome bankruptcy. Follow the advice in this article for help in controlling your debt and deciding if bankruptcy is right for you.