While filing for bankruptcy may be a hard decision to make, for some it is a necessity. You should only enter into bankruptcy if you possess a great deal of knowledge and understanding of the process that is to come. The information in this article contains information and advice from people who have actually gone through the process.
Do not be afraid to remind your attorney of important specifics of your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. Your attorney and trustee should be privy to all information about your finances. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
You should be able to meet with a specialized lawyer for free to ask your questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Do not make any final decisions until every question you have has been answered. There is no need to offer an immediate hire, so take your time. That gives you the chance to speak to a number of lawyers.
When a bankruptcy is imminent, retain a lawyer immediately. Personal bankruptcies are detailed and complex processes, and you may miss something that costs you money. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Chapter 13
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. The Chapter 7 variety can help you eliminate your debts almost entirely. All creditor relationships will be severed. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. In order to choose the right bankruptcy option, you need to know the differences between these kinds of personal bankruptcy filings.
Protect your house. Filing for bankruptcy will not always result in losing your home. You can still keep your home, it just depends on your specific situation and the value of your home. Check to see if you pass the requirements necessary to file for a homestead exemption.
Filing for bankruptcy should not be done on a whim. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. Creditors want to recoup the most money possible from debtors, and they can often get more through debt repayment plans than bankruptcy procedures.
Take some time after filing for bankruptcy to enjoy life. Lots of debtors are stressed out when they’ve come to filing time. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. Your life will most likely improve once you’re over this hump, so relax.
Chapter 7
Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.
It is possible to obtain new vehicle and home loans while a Chapter 13 case remains active. But, it could be harder. Your bankruptcy custodian will need to approve the loan. Document your budget to prove that you’re going to be able to make the payments. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Nobody wants to file for bankruptcy, but in some cases the situation becomes necessary. Having studied the information in this article, hopefully you are better prepared to deal with the bankruptcy process. By learning from others that have been in the same situation, it will make it easier on you in the long run.
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