When in a financial low, you make wonder if bankruptcy is the best choice. Do not worry, because you are not the only one. Countless individuals have determined that bankruptcy is the best way to alleviate their personal financial burdens. The piece that follows includes useful ideas for ensuring that the bankruptcy process goes as smoothly as possible.
When it comes to informing your attorney about your case, don’t be fearful. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If this is so, apply for a secured card or two. This will demonstrate that you’re seriously trying to restore your credit. When you have done well with secured cards for a while, you should be able to obtain an unsecured credit card.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Do not hold back anything, and form a sound plan to make peace with your reality.
Be sure to weigh all of your options before deciding to file for personal bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Protect your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
If your income exceeds your obligations, you should not seek bankruptcy protection. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
After you have filed for bankruptcy, enjoy your life. It’s not uncommon to be overwhelmed by the filing process. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Once the process if over, your life will improve.
As you can see, you are not alone in your need to fix your finances by choosing bankruptcy. But with the benefit of the information you have here, you have a head start on your journey. The tips in this article should give you a good head start on your bankruptcy filing.
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