Whatever led you to declare bankruptcy is probably very sad, but that doesn’t mean that you can’t have a better life after bankruptcy. The main purpose of filing is to start a new and improved financial situation. Don’t look at it as the end of the world; read this article to help you determine how your life will be enhanced by bankruptcy.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
Chapter 13
Find out more about Chapter 13. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Don’t hide from your friends and family while you go through bankruptcy. The whole process of filing for bankruptcy is hard. It is long, hard and sometimes leaves people feeling guilty or ashamed. A lot of people become depressed and withdrawn until their bankruptcy is discharged. Do not isolate yourself or you will put yourself at risk for depression. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
You should never feel shame for needing to file for bankruptcy. A lot of people have a negative opinion of bankruptcy, mostly because they misunderstand this procedure. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. Try to keep a positive attitude during this tough time and you will be able to better cope with bankruptcy.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. Engage a competent lawyer in order to avoid excess stress and keep everything on track. Do not hire based on cost. You don’t have to use the most expensive attorney; you just need a good quality attorney. Talk to friends who have been through a similar situation and ask them for referrals. You could also sneak into court to watch a real live bankruptcy proceeding to see how that attorney handles the situation.
Financial Information
It is important to be upfront with all your financial information when filing for bankruptcy. Forgetting to add these may cause your petition to be delayed, or even dismissed. All financial information needs to be considered by the court. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Look into other options before deciding to file for bankruptcy. You should consider credit counseling. There are many non-profit debt counseling services available. These companies work with creditors to reduce your payments and interest. All you have to do is give them your payments and they handle paying the creditors.
It may be counterintuitive, but in some cases, pulling the trigger and filing for bankruptcy may have better credit consequences than continuing a pattern of credit delinquencies. Although filing for bankruptcy stays on your financial record for 10 years, you can immediately begin to improve your credit. Bankruptcy can give you the fresh start you need.
You need to start getting responsible with your money even before you file for bankruptcy. Avoid taking on more debt right before you file for bankruptcy. Your creditors will take your current finances into account when assessing your bankruptcy filing. Show that you are making a positive change to your current financial situation.
Exercise some care when you pick a lawyer to help you file for bankruptcy. There are many new or inexperienced newcomers who choose this field to practice in. Be sure your lawyer has years of experience and is licensed properly. Use the Internet to look at lawyer’s disciplinary records, background, and client ratings.
All your debts must be listed on your bankruptcy petition, regardless of whether or not you want them to be. Any debts that you leave off of your paperwork will be left out of the final discharge. It is solely your responsibility to ensure all important information is documented. Doing so can help you make sure you don’t end up paying debts that should have been discharged.
The events that lead someone to declare bankruptcy can cause great emotional distress. But, that does not mean life after bankruptcy has to be negative. Actually, your life can become much better by following the advice presented here and moving forward past bankruptcy.
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