Before you file for bankruptcy, make sure you have considered all your options. If you are contemplating filing for bankruptcy, it means that you are in a dire financial situation. Take heart, whether you choose to file bankruptcy or not, there are options available to help you get through your financial difficulties.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. Debt advisors are one of the many other avenues you can consider. If you file for bankruptcy, a mark is permanently left on your credit. Therefore, before you do this, you should utilize all the other options that you have.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Don’t assume that he will remember something you told him weeks ago. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Only make your decision if all your questions and concerns are adequately addressed. You do not need to make a decision immediately after the consult. You can take as much time as you need to meet with different lawyers.
If bankruptcy is an option for you, secure the services of an attorney. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Expect to make payments for up to 5 years before your unsecured debts are discharged. 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 decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. When you file a Chapter 7, your debts will be dissolved. However, creditors will want to hold your co-signer responsible completely.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. However, it won’t be as easy as it may have been to get one prior to the bankruptcy. Your trustee must approve any new loans. Present a planned budget that shows how you can take on the loan payment and stay current. Be ready to justify the purchase that you need the loan for, too.
Know the rights that you have as you file for bankruptcy. Many creditors or bill collectors might tell you your debts cannot be included in a bankruptcy. Only a few debts, including child support and tax liens, are ineligible for bankruptcy. If the bill collector is trying to deceive you, then report that company to your local attorney general’s office.
Be sure you’re acting when the time is right. Filing at the right time can make things go much more smoothly. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Find out when the correct time is for you to file for bankruptcy from a bankruptcy legal professional.
Clearly, bankruptcy does not need to be inevitable. The tips here can help provide you with some guidance to avoid filing bankruptcy. Apply the guidance you just received and see what it can do to improve your financial circumstances and bolster your credit record.
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