It is not uncommon these days for people to be drowning in debt. They are bothered by collection agencies and creditors and their bills are not being paid down. If you find yourself in these circumstances, you might want to think about filing for personal bankruptcy. This article will help you to decide if filing for bankruptcy is the right option for you.
If a personal recommendation comes your way, this should be a lawyer you focus on. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Bankruptcy Laws
Learn the newest bankruptcy laws before filing. Laws are ever-evolving. You must stay current with bankruptcy laws if you want to be successful in your challenge. Your state’s legislative offices or website will have up-to-date information about these changes.
Make sure you consider implications of bankruptcy before filing for Chapter 7. If you choose Chapter 7, you are no longer responsible for joint debts. Although, your creditors may insist that the co-debtor pay off the entire debt.
Be sure you know the bankruptcy laws before you think about filing. You should not transfer your assets to anyone in the year preceding your bankruptcy filing. Additionally, it is against the law for any filer to boost up the debt amount they carry on any credit cards just before filing.
Make sure you are aware of all your options before you file for bankruptcy. For example, you may want to think about credit counseling. This does not necessarily have to cost you, as there are some organizations that will assist you for free. They can work with both you and your creditors to find a feasible way in which your debts can be paid off. Often, they make the payments to your creditors, and you make your payment to them.
Be careful how you pay off any debts prior to filing for personal bankruptcy. You might be legally unable to file for bankruptcy if you were still paying your creditors ninety days ago, or your family members a year ago. Before making any final decision concerning your finances, you should be educated on the rules of bankruptcy.
The first step to making your bankruptcy successful is to turn over a new leaf and decide to manage money better. This includes borrowing money from friends, you want to create a clean slate when you file for bankruptcy. Judges and creditors consider current history, as well as past history when adjudicating personal bankruptcy. Having recent good financial behavior, regardless of how short of a time period, is better than no good behavior at all.
Make a list of all your debts. This is going to be the foundation of your filing for bankruptcy, so be certain to include every debt you know about. Make sure you go through your records and be sure about the exact amounts. Take your time with the process of filing for personal bankruptcy. It is important that all of the numbers and debts included in your case be included accurately.
If you think bankruptcy is an option, you will need to hire a bankruptcy attorney. The complexities of the process of filing, court proceedings and other issues can best be handled by a competent lawyer. Your attorney will be able to answer any questions you may have and will fill out the appropriate forms to file bankruptcy.
It’s a good idea to contact the three major credit bureaus and get fresh copies of the credit reports they have on you once your bankruptcy is a few months behind you. Remember that this report would be representing your closed credit accounts and your discharged debts. If any discrepancies appear, check on them immediately. This will allow you to start fixing your credit.
Ensure that you include any debt to be eliminated on bankruptcy filing papers. If you forget to include any of your debts in the filing, you lose the chance to discharge them. You need to ensure that you account for every debt, so you do not miss any that are eligible for being discharged.
If you headed toward for bankruptcy you have little to lose, so honesty is the best policy. Lying or hiding information about your finances is a very bad mistake. Aside from that, it’s against the law. If you tell falsehoods about your assets or debt, you could even wind up going to jail.
Chapter 13
If you find out that you don’t qualify for the Homestead Exemption after filing Chapter 7 bankruptcy, you may be able to file Chapter 13 in addition for your mortgage. If you will be losing your home in the bankruptcy, talk to your lawyer about whether you should file for Chapter 13 instead of Chapter 7.
Chapter 7 bankruptcy does not automatically eliminate all of the money you owe. Secured debts might have to be reaffirmed and new agreements may have to be made. There are also some debts that can’t be discharged. For instance, you can’t get rid of alimony, child support or court-ordered fines using Chapter 7 bankruptcy.
Once you have realized you must file for bankruptcy, there is nothing to be gained by putting it off. If you find that this is the only choice you have, putting it off will not help. As long as you do nothing, your financial position will get worse and worse and your stress level will continue to climb. This could have a lot of negative effects to your life. The more quickly you get started, the sooner you will get it over with.
This article should have made it clear that there is plenty of help out there for someone who wants to file for bankruptcy. Tackling this in a logical and emotionless manner will relieve you of your debt issues while giving you a fresh start for the future.
This is a limited-time offer. We are not able to guarantee availability if you wait!
