Unfortunately, the subject of bankruptcy is all too common these days. The recession has hit many people very hard. If you decide to file, it’s crucial that you are well educated on the subject of personal bankruptcy, so you are able to make proper choices. Find out more in this article.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Your attorney and trustee should be privy to all information about your finances. Being honest is both the right thing to do and, moreover, it is required by law.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Laws are subject to change, and it’s important that you’re educating yourself about current code only. If you are not sure about the current laws all you have to do is look into what laws have been passed.
Loved Ones
Remember to spend some quality time with your loved ones. The whole process of filing for bankruptcy is hard. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. It is not uncommon for a person to feel the need to pull away from loved ones during the process. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.
Think about all the choices available to you when you file for bankruptcy. Before filing, talk with an attorney who can help you weigh all of your options. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. Your creditors will be willing to work with you to allow you to pay off your debts. They may be able to take late fees off of your account, cut down your interest, or even extend the loan’s repayment period. Creditors would rather be repaid, however slowly, than have you declare bankruptcy.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. The bankruptcy process makes people feel guilty and ashamed. These feelings do not help you and provide no value. Focusing on the positive during this stressful time is a good strategy for coping with your ordeal.
Know the bankruptcy code backwards and forwards before filing. For example, it is forbidden for an individual to transfer any assets away from the name of the filer within the twelve months preceding filing. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
When you are filing for bankruptcy, make sure you list all of the financial information you may have. You can delay your bankruptcy process if you do not add in all important information. Make sure that you add very small sums, even if you believe that they aren’t important. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Credit Cards
Lots of individuals who previously filed bankruptcy vow to shun the use of credit cards or lines of credit in the future. This is not wise, since credit cards can help to rebuild credit. You will not be able to get your credit back to a respectable score if you don’t use credit. Take it slow and get yourself one credit card and slowly rebuild your credit.
Remember that just because you have filed for personal bankruptcy it will not cause you to lose everything you own. You will be able to keep your personal property. Personal property includes items like furniture, electronics, jewelry, and clothing. You will need to talk to a bankruptcy attorney to find out whether your local laws and personal situation will allow you to keep your car or home.
All your debts must be listed on your bankruptcy petition, regardless of whether or not you want them to be. If you do not document certain debts, they aren’t going to be on the discharge. It’s imperative that you record each and every debt, so that nothing gets missed in the petition.
Chapter 7
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. It might even be better to convert from a Chapter 7 to a Chapter 13; talk to your lawyer about this.
As you can see, bankruptcy is quickly becoming more popular due to the poor state of our economy. To ensure that you make great decisions when dealing with bankruptcy, utilize the excellent advice given above.
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