It is an unfortunate fact that the topic of bankruptcy is quite common nowadays. There are many who recognize the role the economy has played in this epidemic. Before you begin to file bankruptcy, it’s imperative that you know how it works so you can make wise decisions. The below article will provide you with this wisdom.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States The Department of Justice is just one resource of information available to you. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. You should always keep money saved for worse times. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
It’s not uncommon to learn soon after bankruptcy that you are unable to get an unsecured credit card easily. Look into getting a secured credit card in order to get back on your feet with building credit. This demonstrates to creditors that you are making a good faith effort to repair your credit. After some time passes they may be willing to offer you unsecured credit.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Chapter 13 bankruptcy might be a good option, so don’t overlook it. 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. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
As you can see, bankruptcy is quickly becoming more popular due to the poor state of our economy. By using the information you’ve read here, you can now make sound decisions about your finances and choose the bankruptcy option that will work best for you.