It’s not a good sign when somebody is filing for bankruptcy. Bankruptcy can be ugly, embarrassing and a tough thing to talk about. So do not think that bankruptcy will solve all of your problems, use this guide in order to fix your financial situation if possible.
Always be honest and forthright when it comes to your bankruptcy petition. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Do not be afraid to remind your attorney of important specifics of your case. Don’t just assume that the attorney will remember it automatically. Do not hesitate to speak up; this is your hearing and your future is on the line.
Chapter 7
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. Your ties with all creditors will get dissolved. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Investigate your other alternatives before you decide you have to go with bankruptcy. Some people have great luck with handling debt with debt consolidation, which means taking out only one loan to pay off many loans. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Do not forget to be around those you love. Filing for bankruptcy, and all that comes with it, can be hard to handle at times. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. Avoidance of friends of family during the process is not uncommon. But, isolating yourself from others could bring out more depression. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
After you have filed for bankruptcy, enjoy your life. It’s not uncommon to be overwhelmed by the filing process. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Things will be sunnier after you take positive steps to move forward.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Before you file, make sure you understand the laws as much as possible. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Other laws you need to know include debt-based regulations. You cannot increase debt via credit cards prior to filing a claim. Your finances basically have to remain frozen.
Know the laws and guidelines about bankruptcy before you formally file. You need to be aware of any issues you will encounter with the bankruptcy code. If you do not know bankruptcy law, your bankruptcy case could be dismissed. Before you begin bankruptcy proceedings, research as much as you can. Doing this can make the process simpler.
When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. Although it may be very difficult to admit that bankruptcy is the answer for you, it will be much harder to continue spiraling into a debt quagmire. Going to a lawyer as soon as you can is the best to remain in control of your situation.
Know that bankruptcy in the end may be your best bet for restoring your credit, as opposed to the continuous pattern of missing or making late payments on what you owe. While bankruptcy will show up in you credit file for the next 10 years, you can begin the process of making your credit situation better right away. Among the advantages of bankruptcy is that of a clean slate.
As you can see, you do not have to resort to bankruptcy. Take the information provided here and avoid filing if at all possible. Make the best use of this information to get your life back on track and prevent further damage to your credit.
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