Although circumstances leading to bankruptcy may not be positive, life following bankruptcy can be. The main point is to start over financially. Read this article to learn how bankruptcy is a constructive, not destructive, process in reshaping your financial situation.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If this is the case for you, you should begin to investigate the legislation in your state. Each state has its own laws regarding personal bankruptcy. Your house is safe in certain states; however, in other states, it isn’t. Know what the laws are in your state before filing.
If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. Avoid ever touching retirement funds until you have no other choice. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. Not only is hiding income and assets wrong, it is also a crime.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
Prized Possessions
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Keeping secrets or trying to outsmart everyone is not a wise move.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
It is important to be upfront with all your financial information when filing for bankruptcy. Leaving out information either purposely or by mistake can prolong your petition, or have it dismissed completely. Even if you believe that certain financial information is inconsequential, do not avoid including it in your documentation. This may include secondary employments, vehicles you own and loans you still owe money on.
Don’t drag your feet figuring out if bankruptcy is the right thing to do. It is difficult to admit that you are in over your head financially, but waiting will just make the problem worse. Speaking with a professional quickly will provide you with the advice you need before things spiral out of control.
Try to get a referral from a trusted source before choosing an attorney to handle your bankruptcy and make sure they have no issues with the state bar or the better business bureau. There are a disproportionate number of inexperienced lawyers working in the bankruptcy field. Always confirm that your lawyer is highly experienced and licensed to handle a bankruptcy. You can check histories of attorneys online, including disciplinary records and backgrounds.
Be sure to list any and all debts that need to be eliminated when you file your bankruptcy paperwork. Any debts that you leave off of your paperwork will be left out of the final discharge. Double-check the paperwork before you file it. Otherwise, you might be liable for debts that you could have gotten rid of during bankruptcy.
As said previously, a situation leading to bankruptcy can be upsetting. However, once this chapter is written it is done and you can begin to start fresh. Actually, if you use the advice and ideas from this article, you will be able to turn bankruptcy into a turning point for your life.
This is a limited-time offer. We are not able to guarantee availability if you wait!
