It can be hard, but at times necessary, to file for bankruptcy. If you are thinking about filing for bankruptcy, it’s best to be armed with as much information as possible. Continue on for some helpful information from people who have dealt with the bankruptcy process themselves.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Initial Consultation
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. The lawyer who properly answers your questions is the one you should hire. You do not need to make a decision immediately after the consult. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. For example, consumer credit counseling programs can help if your debt isn’t too large. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7 bankruptcy completely wipes out your debt. All the things that tie you to creditors will go away. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
Do not file for bankruptcy if your income is greater than your bills. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.
When you are going through bankruptcy proceedings, it is sure to cause a great deal of stress. To relieve yourself of some stress and keep thing organized, hire a good lawyer. Be sure that you consider more than the expense when you choose a lawyer. You don’t have to use the most expensive attorney; you just need a good quality attorney. Get referrals from people you know who have been in your situation, check with the better business bureau and use free consultations to interview several people. Consider attending a court hearing so you can witness how the lawyer operates.
If you are going to file for bankruptcy make sure you are prompt. Some people think that by ignoring financial problems, they will just disappear. This kind of thinking could prove to be a mistake. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. Once you realize that the debt you have is too much for you to handle, start thinking about talking to a bankruptcy attorney, they can guide you throughout the entire process.
Nobody wants to file for bankruptcy, but in some cases the situation becomes necessary. Now, equipped with the information from this article, you can handle the process much more completely. Learning from others who have filed for bankruptcy is the best way to ensure that you make intelligent decisions and avoid making any mistakes.
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