There are many valid reasons for filing bankruptcy. Sudden loss of income or major life changes can result in situations where bankruptcy may be the only out. Read this article to learn more about bankruptcy and find out if filing is the best option for you.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. There are other options available, such as credit counseling for consumers. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. You should always keep money saved for worse times. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Don’t fear reminding your attorney of any specific details of your case. Don’t just assume that the attorney will remember it automatically. Don’t be afraid to speak up, as it is your case and your future will be affected by its outcome.
Don’t file for bankruptcy until your represented by an attorney. You might not understand all of the various aspects to filing for bankruptcy. A bankruptcy attorney can advise you on how proceed properly.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Looking for an attorney will help you find a lawyer you feel good around.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Learn the benefits and drawbacks of each type before deciding which is right for you. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. 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 plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember, though, that if you fail to make even one payment, the case will be thrown out and you’ll be right back where you started.
It is important to understand your rights when you file for bankruptcy. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. There are very few debts, such as child support or student loan debt, that can’t be bankrupted. Should you face a creditor like this, and you are informed that the debt is not valid under the bankruptcy. These types of infractions should be reported.
Decide right up front that you are not going to feel embarrassed or ashamed about needing to file bankruptcy. For many people, bankruptcy is a source of guilt and feelings of worthlessness. Feeling like this will not help your situation and can actually do serious damage to your mental well-being. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Because bankruptcy is such a challenging time that a great deal of stress, both mental and emotional, may be involved. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Don’t hire based solely on cost. Think about quality rather than cost when hiring an attorney. Ask your friends, relations and acquaintances who have shared your experience to give you referrals to good lawyers. You might even go to a bankruptcy hearing to watch how a lawyer presents his case.
If you have tried everything to save your finances but have been unable to find a solution, it might be necessary for you to file bankruptcy. If circumstances beyond your control have brought you to this place, you do not have to be stressed out. You will find that this article contains very valuable information.
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