Nowadays, the economy is not in very good shape. A lot of people with no jobs find themselves in debt. Deep debts usually wind up in bankruptcy. This is not a pleasant situation. For anyone who is facing the threat of bankruptcy, the advice in this article can help you deal with the situation more effectively.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. When it comes to bankruptcy, states have varying laws. For instance, some states protect you from losing your home in a bankruptcy, but others do not. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process. Keep up with your current state’s laws and regulations to figure out what steps you should take.
Always protect your house. Filing for bankruptcy will not always result in losing your home. Whether you get to keep your home depends on a few things, including its value and whether you have debts like a second mortgage or HELOC. You may also want to check out the homestead exemption because it may allow you to keep your home.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy for your filing. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Expect to make payments for up to 5 years before your unsecured debts are discharged. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
If you are earning enough to cover your bills, don’t file for bankruptcy. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
The economy is rebounding slowly, but there are still people who can’t find employment that pays a living wage. If you are unemployed, or lack a regular income, you can still take steps to avoid having to file for bankruptcy. This article should have given you some solid advice for staying afloat in tough times. Best of luck.
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