Bankruptcy is a tough decision, one that should be given a lot of thought. Read through the information in this article and use it to help you make an informed decision. Find out all the information you can before filing for bankruptcy.
Bankruptcy is tricky and hiring a good lawyer will be a must. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Before filing for personal bankruptcy, make sure you are doing the right thing. You can find services like counseling for credit that consumers can use. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Make sure your home is safe. Filing bankruptcy does not necessarily mean that you will lose your house. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Consider filing for Chapter 13 bankruptcy. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Consider that if you even miss one payment, your case will not be considered by the court.
As this article has demonstrated, you do not have to go through bankruptcy. Many steps have to be taken, and all of them must be performed properly. By following the suggestions above, you can make sure that you have addressed all of the important items that you need to take care of during your bankruptcy.
