If you are in debt and on the verge of filing for bankruptcy, then do not worry any longer. There is a lot of information online that can help you avoid bankruptcy. Read through these tips to avoid going through bankruptcy.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. There are other options available, such as credit counseling for consumers. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Make your decision after all of your questions have been answered. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. You could even go to different lawyers for advice.
When a bankruptcy is imminent, retain a lawyer immediately. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
Unsecured Debt
Look into filing Chapter 13 bankruptcy. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $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. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.
Do not file for bankruptcy if your income is greater than your bills. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. 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. Creditors, however, will hold the co-signer liable for the entire balance of the debt.
If you are going to file for bankruptcy make sure you are prompt. The judge reviewing your petition will consider your recent behavior, purchases, income and payments when making a decision. All your personal debts will easily go haywire, building and collapsing very quickly. This often leads to foreclosures and garnishments. As soon as you know that you are too far over your head, make the move to call an attorney skilled in bankruptcy court, to weigh your options.
Pay attention to how you satisfy any personal debts before filing for bankruptcy. The laws surrounding bankruptcy often prohibit paying back certain creditors up to ninety days prior to filing, and family members up to a year! Know the rules before you jump in feet first.
Choose your bankruptcy attorney carefully. Many newer lawyers enjoy this kind of law. Before hiring a lawyer, make sure he or she is licensed and experienced. You can learn of a lawyer’s history and reviews from past clients via the Internet.
Once your bankruptcy is over, request a copy of your credit report from all of the credit reporting bureaus. You will want to see that everything on the report states that the debts have been discharged and closed out. If you find any discrepancies, immediately follow up on them so you can continue to repair your credit.
Rethink a divorce when in a tough spot with finances. When many people divorce, they have to pursue a bankruptcy when the realities of the costs comes to light. It is often wise to give the situation more thought before making a final decision.
Some lawyers have a phone service creditors can call instead of you. By giving them the information, they can inform creditors that your debt will be covered by bankruptcy. This will put an end to the collection phone calls.
You’re going to need to select an attorney with ample experience dealing in bankruptcies if you’re planning to file. There are numerous attorneys available to assist you with your case. Hiring the cheapest lawyer may seem like the most logical option, but this is only true if they are also experienced.
Planning can make all the difference in the world. Any steps you take that give you additional time to address your debts are good ones. If you are making efforts, then you should have nothing to worry about. Once you have resolved your debt problems, you will be ready to start moving forward.
This is a limited-time offer. We are not able to guarantee availability if you wait!
