Chapter 7 And Chapter 13 Bankruptcy Alternatives

alternatives to bankruptcy

In today’s times, bankruptcy is not as rare as it has been at times in the past. This is due to the current financial climate. Prior to making the decision to file a petition, you need to have a thorough understanding of the topic so that you act in your own best interest. This article will teach you what you need to know about bankruptcy alternatives.

Don’t fear reminding your attorney of any specific details of your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.

Obtaining Unsecured Credit

It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If you are in this situation, applying for a secured card may be the answer. This will allow you to start building a good credit history while minimizing the bank’s risk. Eventually, you could be able to obtain unsecured credit.

Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.

Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Do not hold back anything, and form a sound plan to make peace with your reality.

Bankruptcy Alternatives

If you are about to file for bankruptcy, then make sure you hire a lawyer. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.

The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. Your former ties with creditors will cease to exist. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.

You can take steps to hang onto your house. Bankruptcy filings don’t necessarily have to end in the loss of 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. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.

Clearly, the economy nowadays has had a dreadful effect on individuals and has caused bankruptcy to be a topic that is on everyone’s minds. So, use what you learned today about bankruptcy alternatives so that you know what decisions to make while you contemplate filing.

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