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Personal Bankruptcy And Why It Might Be The Right Choice For You

These days, the word “bankruptcy” is about as common as the word “the.” Not only the economy, mind you, but people’s spending habits are also to blame for the increase in claims filed. Before you begin to file bankruptcy, it’s imperative that you know how it works so you can make wise decisions. Within this article, you will find the knowledge and need.

If, after you file a Chapter 7 petition, you learn that the homestead exemption does not apply, it might be possible to convert your case to a Chapter 13. Sometimes, the best course of action may be to simply re-file your case as a Chapter 13 bankruptcy. Talk to your lawyer to determine if this is true in your case.

Don’t fear reminding your attorney of any specific details of your case. Lawyers are people too, and sometimes they forget important information and need to be reminded. Your case and future are affected by the attorney’s action, so never be afraid to communicate.

You trust your lawyer, but it is your responsibility to educate yourself as well. It’s very important for you to understand what is going on throughout the bankruptcy process, even if your lawyer is providing all of the guidance for your actions. While you do need to trust your lawyer, it is your money that they are dealing with– you need to stay in control as much as possible.

It is possible that a bankruptcy might actually be smarter over the long term than struggling month to month with consistently late or missing payments. Bankruptcy can be seen on your credit history for 10 years, but you can begin repairing the damage immediately. Among the advantages of bankruptcy is that of a clean slate.

Examine all of the possible options available to you before you choose to file for bankruptcy. Review your situation and see how many of your debts you can have discharged. Certain debts, like credit card debts could be discharged if incurred within ninety days after declaring bankruptcy. Be certain to know the laws that apply in your jurisdiction.

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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. Chapter 7 is the best option to erase your debts for good. Any ties that you have with creditors will be dissolved. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.

Always pay any bills you incur on time, and don’t pay only the minimum amount due. Many folks make only the minimum payment because it’s comfortable, but that can leave them in debt for years longer than necessary.

Don’t assume that all of your debts will automatically be dismissed when you file for Chapter 7 bankruptcy. Some secured debts may need to be reaffirmed, which means you have to draft a new agreement for repaying them, and some debts aren’t dischargeable under most circumstances. For instance, court-sanctioned fines cannot be discharged under Chapter 7. The same goes for child support and alimony payments.

Assess your documentation for accuracy. Even if you have a lawyer to do that work for you, you are the one who has to make sure your information is correct. The attorney is probably dealing with many cases and errors are not unlikely. Therefore, it is important to make certain that every document filed in your case contains accurate information.

In conclusion, bankruptcy is common these days, many times because of the way the economy is. To help you make good decisions regarding bankruptcy, consult with this article and use the knowledge to your advantage.