One today is worth two tomorrows.
You don’t always walk away from all of your debts without having to repay anything when you file bankruptcy. For instance, Chapter 13 allows you to plan a payment plan and to pay back your debt over the next five years. Most people think paying off their debts is a moral obligation, so avoid filing bankruptcy. With Chapter 13, people can escape their debts, but can still make good on what they owe to creditors. Check for accuracy. Realize that mistakes can occur at any point in the process and the accuracy of the information is your responsibility. Remember that an attorney deals with more than just your case, so keeping your details straight from others is 100% unlikely. This is why it is important to make sure that every bit of paperwork is accurate.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors. Do a lot of research before deciding whether or not to file. Assess your debt to figure out which types can be discharged with bankruptcy. Certain debts, such as credit card debt for non-essential items, may not be discharged if they were incurred within 90 days of declaring bankruptcy. Have a look at what laws are applicable within your state. You should not be ashamed that you’re filing for bankruptcy. It is common for people to suffer from depression and feelings of failure if they end up needing to file for bankruptcy. If you have conducted research and decided this is your best option, look at it as a positive step in the right direction.
You can either qualify for a Homestead Exemption to Chapter 7 or you should file for Chapter 13 to secure your home. For some people it is a good idea to convert your Chapter 7 case to a Chapter 13; talk to your lawyer about which action to take next.