The national economy remains in poor condition. The bad economy has contributed to more job losses and mounting personal debt. Because more people are falling into debt, more people are filing for bankruptcy. If you are in a difficult situation and contemplating bankruptcy, this is the perfect article for you.
Before you file for bankruptcy, carefully consider if it is the right option for you. There are other options available, such as credit counseling for consumers. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Be sure to remind your lawyer if it seems that some details of your situation are forgotten. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. You need to read the exemptions for your state, so you know what property you can protect. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
Chapter 7 Bankruptcy
Remember to understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. All of your financial ties to the people you owe money to will disappear. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Always 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. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Filing for bankruptcy is not recommended when you have income more than your debts. 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.
Don’t drag your feet when it comes to filing bankruptcy. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. When you find that you cannot take care of your debts anymore speak with an attorney for bankruptcy to talk things over.
Do some research about bankruptcy laws before filing for bankruptcy. You should not transfer your assets to anyone in the year preceding your bankruptcy filing. It’s also prohibted to run up debt on credit cards just prior to filing.
While the economy may be improving somewhat, lots of people remain unemployed and in financial turmoil. That said, it is possible to avoid bankruptcy even if you are having cash flow problems. This article should have given you some solid advice for staying afloat in tough times. Also, try to remember that tomorrow provides you with a fresh start.
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