Jan 292018
 

Many people these days have fallen deep in to debt. The hate answering the phone because many debt collectors call daily, and every trip to the mailbox means another stressful bill. If you are experiencing overwhelming stress due to your financial situation, you might want to think about filing personal bankruptcy. The article below will help you figure out if bankruptcy is right for you.

Many people need to file for bankruptcy when they owe more money than they can pay off. If this applies to you, be sure that you know what the laws of your state are. Laws differ from one state to the other. For instance, some states protect you from losing your home in a bankruptcy, but others do not. It is important to be cognizant of the laws in your state before filing for bankruptcy.

You might experience trouble with getting unsecured credit after filing for bankruptcy. If you find that to be the situation, consider requesting secured cards. That will show lenders that you are committed to rebuilding your credit. Unsecured credit may be offered to you quicker than you think after doing so.

Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. 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.

Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.

Keep at it! If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Interview and research attorneys before choosing one to help you with your bankruptcy.

Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.

Determine which assets won’t be seized before filing for bankruptcy. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. It is important to be aware of this list so you will know what assets are saved. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.

Your most important concern is to protect your home. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.

Before you file for personal bankruptcy, weigh all of your options. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. Lenders can assist you in a lot of ways, by cutting interest rate charges and cutting off late fee charges. They can also lengthen the loan. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.

Chapter 7

Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. Chapter 7 involves the elimination of all of your debt. You will be removed from any contracts you have with your creditors. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. Both options have advantages and drawbacks, so do your research before deciding.

Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. When filing for Chapter 7, you won’t be responsible legally for debt signed by co-debtors and yourself. Although filing for bankruptcy excludes your from financial responsibility, co-signers will still be expected to pay the loan amount in full.

Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. It is just tougher. Your bankruptcy custodian will need to approve the loan. Present a planned budget that shows how you can take on the loan payment and stay current. They may also want to know why you believe you need the loan.

Review bankruptcy rules before you file your petition. There are many laws which govern bankruptcy; therefore, to protect your bankruptcy case, know the rules. Some mistakes in your papers can cause your case to be dismissed. Before continuing, research personal bankruptcy. The entire process will be much easier when you move forward with awareness.

Find ways to relax while you go through the process of filing for bankruptcy. So many people become stressed when they file. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.

Take a look at all of your financial options before filing for personal bankruptcy. You might want to look into the possibility of credit counseling instead. You can easily find non-profits that can assist you in your debt struggles. They will liaise with those you owe money to and try to get better payment options opened to you. Often, they make the payments to your creditors, and you make your payment to them.

As you can now see, there is much information available that can help you through your bankruptcy. When you handle it correctly, a bankruptcy can resolve a great number of your financial troubles and enable you to start turning your life around.

Pennsylvania Chapter 7 Bankruptcy Attorney James Monaghan

When your debts have accumulated beyond your means to repay them it creates constant financial pressure. Constant creditor harassment becomes extremely stressful.

When you look at the money coming in and the amounts you owe to your creditors the situation may seem hopeless. But there is relief.

I am Montgomery County, PA bankruptcy attorney James V. Monaghan and I have helped hundreds of people in your position get out from under debt by filing Chapter 7 bankruptcy.

I am an experienced bankruptcy attorney and I routinely represent couples, families and individuals throughout Montgomery County, Pennsylvania.

Personal bankruptcy through Chapter 7 eliminates most unsecured debts

• Credit card balances
• Charge accounts
• Most judgments
• Certain back taxes
• Gambling debt
• Medical bill debt
• Wage garnishment

You do not have to pay those creditors back and they must stop calling your home, your relatives and your work as soon as you file. Secured debts (a mortgage, a car loan), recent taxes, student loans and child support are not erased, but by wiping out your other debts you will again have money to meet those obligations.

Many people fear they will have to give up what they own when they file for bankruptcy. However, most filers do not lose anything. Chapter 7 is also known as liquidation; a bankruptcy trustee liquidates your assets to repay creditors.

However, most assets are protected by exemptions. With those exemptions you can keep your home, your car, your retirement funds and most personal belongings. When you contact my office I can explain which debts are dischargeable and which assets, if any, you would forfeit.

One of the benefits of filing bankruptcy is the opportunity to repair your credit. Your credit rating is already low if you have high debt, late or missed payments, or judgments filed against you. You may initially have trouble getting credit or be charged higher rates.

However, within a year or two, you should qualify again for loans and credit cards at market or near-market rates. I have had many clients repair their credit to the extent that they were able to buy a home several years after filing bankruptcy.

People often ask me "Can Anybody File Chapter 7 Bankruptcy?"

In 2005, Congress changed the consumer bankruptcy law to implement an income means test. If you earn more than the median household income for Pennsylvania after taking a variety of deductions, you may be required to file for Chapter 13 which is a debt consolidation bankruptcy. That said, most people who qualified for Chapter 7 under the old law still qualify.

If you are in need of financial relief contact The Law Offices of James V. Monaghan in Norristown, Pennsylvania. I can be reached at (610) 275-5800. You can also visit www.norristownbankruptcylawyers.com to arrange a free consultation.

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