Tips For Chapter 13 And Chapter 7 Bankruptcy And Property

Jun 25th, 2013 | By | Category: Debt

Going through bankruptcy is a really really stressful experience. When you’re in a bind, financially, you may find that you have limited options. Despite a bankruptcy on your record and a dinged credit score, you can often still get loans if you need them.

Learn as much as you can about bankruptcy by going to informational websites. The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.

When you feel that you have no other alternatives and you must file for personal bankruptcy, try not to just spend your life savings to pay off unsecured debt. You shouldn’t dip into your IRA or 401(k) unless there is nothing else you can do. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.

Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. By doing this, you will be letting people know that you want to fix your credit score. After a time, you are going to be able to have unsecured credit cards too.

Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. Penalties may include fines, imprisonment or denial of the filing.   If you hold back stuff you lose credibility, and you really need that in this circumstance.

Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If you do not understand what you are reading, talk to your attorney before making that serious decision.

You should weigh every option before thinking about bankruptcy. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. Loan modification plans on home loans are a great example of this. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.

chapt7vs13Lower Payments

You may want to see if you can get lower payments on your vehicle if you want to keep it. A lot of the time you can lower payments by filing for Chapter 7 bankruptcy. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.

Even when filing for bankruptcy you should now be aware that this should not put a damper on your life. Saving your money goes a long way to show your lenders concrete proof that you are serious about reestablishing your credit. Build up your savings and see what kind of deal you can get when you apply for a car loan or a mortgage.

Chapter 13 allows you to keep your assets and pay off debt with a payment plan.  You can also get your record back to good health after everything is paid off.

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