Protect Yourself Even In Bankruptcy
Bankruptcy usually does people the favor of taking the stress off their shoulders and giving them a sense of starting anew. After this initial period of relief has subsided and your finances are back on track, you will probably want to get a loan for something down the road. Many people are told before they declare bankruptcy that they will never be able to buy a big ticket item as they’ll never be able to take out a loan. Although usually the case, you can still get a loan after bankruptcy.
Some lending agencies do most of their business with those individuals who have previously filed for bankruptcy or otherwise have poor credit. In most cases, an individual will not be able to take out a loan until the bankruptcy period has ended or their case has been dismissed in court. These types of loans are dependant on whether you filed for Chapter 7 or Chapter 13 bankruptcy.
For example if your case is classified as Chapter 7 bankruptcy, you only have to wait for two years until you can take out another loan. If you happened to file for Chapter 13, you will have to wait until you have paid the creditors what they are owed and the judge dismisses the case. It is because of the many nuances between these classifications that you should always hire a bankruptcy lawyer to represent you. It may seem expensive to hire a lawyer when you’re about to file for bankruptcy, but if you want to keep anything that you own, hiring a lawyer is essential.
When filing for bankruptcy, even though you should have a lawyer, it is important to know the differences yourself. By filing for Chapter 7 bankruptcy, you will be forced to sell your assets and give the money to your creditors. When apply for Chapter 7 protection, it would be helpful to compile a list of your sale-able assets and your debts. Take this to your lawyer so that he can determine if any of these assets are protected from liquidation based on which state you live in. Anything that you can’t place on the exempt list will have to be turned over to the state for them to sell to the highest bidder.
Chapter 13 protection allows an individual to work out a payment plan with the creditors without having to pay interest. When you file for this type of bankruptcy, you must present a plan as to how you’ll get out of debt, and you’ll have to give a big percentage of your check to the state to settle your debts. Secured debt that you have to pay off such as property cannot be more than $922,975 while unsecured debt such as credit card debt can’t equal more than $307,675.
In order to file for bankruptcy, you must enroll yourself in credit counseling in order to learn fiscal responsibility. After taking this class, you and your attorney will have to meet with those who you owe money where you will present your plan to pay off your debt. Your creditors have thirty days to challenge your plan of action and 90 days discuss the next course of action for you with the court.
The biggest different between Chapters 7 and 13 is that with Chapter 13, the court will allow you to keep your home and car as well as certain other possessions. As suggested earlier, it is always best to retain a lawyer when beginning the process of filing for bankruptcy. Only with their help will you be able to properly protect yourself and your family in these troubling times.
This article is written specifically with United States audience in mind. However, you are advised to seek a local lawyer near you to ensure the accuracy of the details shared here. If you are in Phoenix, get the advise of a Phoenix Bankruptcy Lawyer.
First Thing You Should Do If You Find Yourself In A Financial Mess
As more bad news of workers losing jobs are being reported each day, it is hard to tell whether one’s job is secure in the midst of the economic crisis. Whilst many of those in the middle or upper income level might be able to weather the storm if they are laid off (because they might have built up a savings nest), those in the lower income group might find themselves in greater trouble if they lose their job, have inadequate savings and are currently borrowers from financial institutions.
It would not be surprising to find that the number of bankrupty cases continue to rise in tandem with the reported loss in jobs or the thought of filing bankruptcies become more frequent in the mind of these workers. Would filing for bankruptcy be the best option there is to get out of the terrible financial mess that is plaguing these workers?
The best thing that they can do in this scenario is to appoint a lawyer who is an expert in these bankruptcy cases or to consult a trustworthy and competent financial consultant who would be able to give the best advise on how to manage the spiralling debts. Be frank with them and give them full details of your financial situation and discuss with them the best way out of the mess.
To save costs (which you should if you are already in a financial mess), it would be best to find a lawyer near your location. For instance, if you are in Los Angeles, finding a Los Angeles Bankruptcy Lawyer should not be difficult with a few searches on the net or through recommendation. In Malaysia, however, it would not be as easy to find a lawyer who specialises in bankruptcy cases through a net search because lawyers are not allowed to openly advertise their services.
