As the economy continues to be weak, many people have a hard time paying their bills and getting their debt under control. If you have exhausted all other options and there is no better way out, then bankruptcy should be considered. When it comes to filing bankruptcy, many people fear their financial future for the years to come. I want you to know that when you have exhausted all other options, it is important to make a well- weighing decision. It would help if you did this so you could have a fresh start.
Tips for Filing Bankruptcy:
salt the amount you have to pay to a trustee: in many cases, if you are filing Chapter 7 bankruptcy, you will be required to make payments to the court to repay your debts. The trustee of your chapter 7 bankruptcy determines how much you need to pay. This amount is used to pay your creditors to keep your home and car. If your income is lower than what the trustee requires, you want to make payments to a chapter 13 bankruptcy trustee. These payments will be placed into a repayment plan until you have all of your debts paid off.
Consider if a bankruptcy lawyer is needed: the laws of bankruptcy are very complicated. Most court cases fail, so you need to have an experienced bankruptcy lawyer on your side. In addition to helping you file, they can advise you on the best strategies for you to use. An attorney can also help you avoid common errors that can result in a dismissal.
Hire a bankruptcy petition preparer: An experienced bankruptcy petition preparer knows the ins and outs of the bankruptcy system. They can save you time and money in an otherwise busy process. Most petition preparers, however, do not have the necessary experience to prepare your case accurately. This may cost you money, which could have been used towards your debts.
Consider a TIME Garc:”;” Time is on your side!” You are in a good position to negotiate with your creditors. You can retain ownership of your home, your car and other assets. This means that they cannot foreclose on your home, but you don’t want people coming after you.
Hire a Funding Source: If you don’t have a lot of collateral and the money in your bank account is tied up, you can hire a professional, organized funding company to help you get what you need. This will move you along, and shortly after your debts are satisfied, you will have the cash to start your life or become successful in business.
File Chapter 7 bankruptcy: As stated above, Chapter 7 bankruptcy is the most common option for individuals. Chapter 7 will relieve you of some or all of your debts and allow you to begin again after it is fully discharged.
Hire a bankruptcy lawyer: Filing bankruptcy is not something you do without a lot of consideration. This is going to be a very big decision. There is no question that it is a very important step in your financial future. By considering the above factors as you examine your options, you will have accuracy as well as success when filing. Your attorney will be a major step in this process. As this is likely one of the largest financial investments you will make, it will be important to have a highly professional, knowledgeable attorney on your team.
Let us discuss some of the most popular bankruptcy options again for those filing chapter 7.
Chapter 7- is a liquidation bankruptcy. Under this bankruptcy code, you can generally discharge your unsecured debts, like credit cards. Your assets, however, are sold by a trustee to pay off as much of your creditors as possible, with the remainder going to pay down your mortgage arrears. Under Chapter 7, all of your non-exempt assets (those that are not exempt from levy) go away and are liquidated.
Chapter 13- is a repayment plan based on your income. As you file, you work with one of the many attorneys in your area to determine how much you can keep and how much you have to pay annually to your creditors. Curiously, many of these attorneys do not want you to declare chapter 7. This is understandable because they will likely keep half your debts for their own benefit if you declare this. This approach does insulate them for their own services as well as the creditors.
Chapter 11- is the bankruptcy option for big corporations and other legal entities. The chapter of the Bankruptcy Code of the United States that allows this type of bankruptcy to be filed by individuals. Since so few people actually qualify for this option, it is not typically filed by individuals but by businesses. Most chapter 11 bankruptcies are made up of mainly unsecured debts that the debtor does not have the means to repay.Leave a comment