If you are in debt, you understand the pressure and extreme stress it causes. Debt is a very common problem because it is so easy to get and most people aren’t properly educated on how to deal with it. There are varying degrees of debt from just a few hundred dollars in student loans to tens of thousands of dollars in credit card debt. If you have a lot of debt and it is impossible for you to manage it, bankruptcy may be your only choice. Follow this bankruptcy information to find out if bankruptcy is the right step for you and how to get started.
Can you afford the minimum payments on your credit cards and other loans? If you can’t afford the minimum payments, you can’t afford to get ahead either. You are falling further and further behind as time goes on. With proper knowledge of bankruptcy information, you can make an informed decision about bankruptcy and make the right moves when you begin to file.
Why it is important to have beforehand knowledge regarding bankruptcy policies is because you need to know what you have signed up for because this is a very slippery slope and not everyone is fortunate enough to clear their credit history to a clean slate and live to tell the tale so you will need to pay your bills on time without fail because the San Diego’s bankruptcy attorneys as rated by the San Diego are of top class and very passionate about their jobs because they don’t let go of financial defaulters so easily and make them pay for all the money they have owned with interest.
Do not file for bankruptcy if you can afford to pay your minimum payments and then some. Bankruptcy will damage your credit making it nearly impossible to get a loan for 10 years after declaration. Try other forms of help such as consolidation, debt settlement, or living on a strict budget first. In most cases, a strict budget is all that is necessary, but there are situations where you must declare bankruptcy.
The following bankruptcy information will help you begin the process. It is a difficult process and can be stressful. You will first need to contact a lawyer, preferably a bankruptcy lawyer, to get started. Your lawyer will file a bankruptcy petition for you, and as long as this is your first filing, you will be granted automatic stay. This means creditors are no longer allowed to call or contact you.
You will be appointed a trustee who will determine if you will need to file chapter 7 or chapter 13 bankruptcy. Chapter 7 is liquidation and chapter 13 is reorganization. It is harder to be granted chapter 7 now than it used to be. With liquidation, your non-exempt debts, including student loans, mortgage, etc., will be discharged. With reorganization, your debts will be paid but then your trustee will set up a plan for you to pay them back. The new payments will be easier to manage.
A meeting of creditors will take place where the creditors are able to ask you questions in order to make sure you are being truthful and honest. It will then be up to your trustee to make the necessary decisions. You may or may not be granted some form of bankruptcy. You have to qualify. If you do qualify, you will need to go to mandatory credit counseling as well.
Once you have gone through the process, the bankruptcy will remain on your credit for 10 years. This will make it very difficult to get a loan, but not impossible. If you work hard at repairing your credit and learn how to manage your money correctly, you will be able to return back to a normal lifestyle and be able to take out loans.
Follow this bankruptcy information closely and take the process seriously. Bankruptcy is not an easy way out. It is not always the best answer, but in some cases, it is. Speak with a bankruptcy lawyer if you are unsure.