We are in a difficult economic state these days. Because of the state of the economy, a lot of people have been let go from their jobs and have acquired debt. Debts result in bankruptcy, which is never a good thing. The following article will help you, or your loved ones, gain control of your financial situation and hopefully prevent bankruptcy.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The US Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
Credit Card
Getting unsecured credit post-bankruptcy will likely be difficult. Look into getting a secured credit card in order to get back on your feet with building credit. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
Before declaring bankruptcy, ensure that all other options have been considered. For example, consumer credit counseling programs can help if your debt isn’t too large. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Remember to only file for bankruptcy if you need to. Consolidating current debt could make it easier to manage. There is not easy process associated with personal bankruptcy. It will affect your access to credit in the future. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Chapter 13
Consider if Chapter 13 bankruptcy is an option. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. 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.
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 filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
Do not wait until things go from bad to worse before filing bankruptcy. For some people, they tend to ignore their poor financial situation and just wishing it away, but that is only putting you in more danger. Yet you can have debtors come after you and potentially take your home if you are not handling your debts properly. Speak with a bankruptcy lawyer as soon as you become aware that you cannot handle your debts.
Before you file, make sure you understand the laws as much as possible. As an example, it is prohibited for someone to transfer assets from the filer’s name for one year prior to filing. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
If you intend to file bankruptcy soon, you may want to discontinue paying all debts. There are many laws when it comes to bankruptcy, including prohibition of paying some creditors 90 days before you file, as well as family for a whole year. Find out more about legal requirements before making your decision.
Do not hesitate or stall when determining if filing for bankruptcy is the correct choice for your life and situation. It is difficult to admit that you are in over your head financially, but waiting will just make the problem worse. A qualified bankruptcy lawyer can give you advice about filing for bankruptcy and help you weigh other options.
Take the time to make a complete list of your debts. The list will be a fundamental element of your bankruptcy petition, and therefore it is important not to omit anything. Review your records to determine the precise amounts that you owe. Take care not to miss any debts that you need to disclose, or you will be responsible for paying them back after you have filed for bankruptcy.
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. Bankruptcy law seems to be a haven for new, inexperienced attorneys. Be certain your attorney has enough expertise and has a valid license. If you want to check for a proper lawyer, you can use the Internet, ask your friends, or look for a popular lawyer via the Yellow Pages. The idea is that you want to ensure your lawyer’s competency on the issue.
Even though our economy is slowly improving, many people still do not have jobs or decent wages. If you are lacking a steady income, and are facing mounting bills, there are still steps you can take to help avoid bankruptcy. This article should have given you some solid advice for staying afloat in tough times. We wish you well.
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