Anything leading you to going through bankruptcy is not a happy tale, but the life you live after might be. Bankruptcy exists in order to provide you with a fresh start. Read this article to find out how to use bankruptcy for a chance at financial rebirth.
Never shirk on the truth in your petition for bankruptcy. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Ask for a free consultation with your bankruptcy attorney and ask questions about experience and education. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. You should make a final decision only once all of the questions or concerns are sufficiently attended to. It is not necessary to decide immediately after your consultation. You can take your time and check out several attorneys before making your final selection.
Learn of new laws prior to deciding to file for bankruptcy. Bankruptcy laws constantly change and it’s crucial you know about them so you the process of filing for bankruptcy goes smoothly. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Chapter 13
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. Any ties you have concerning creditors will definitely be dissolved. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Look for a lawyer who you can relate to.
Before filing for bankruptcy ensure that the need is there. It may be that all you really need to do is consolidate some of your debts. Declaring bankruptcy is a very involved process that can cause a good deal of anxiety. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
Chapter 13 Bankruptcy
Thing about 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. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Remember that missing a payment to the plan will result in your case being dismissed.
It is important to understand your rights when you file for bankruptcy. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. Few debts exist that are not covered by bankruptcy, such as student loans or child support. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
When you are going through bankruptcy proceedings, it is sure to cause a great deal of stress. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Make your hiring decision based on several criteria, not just on price. You do need someone who is costly, just someone who is good at what they do. You can get good information about attorneys from friends,the internet and free consultations that most attorneys provide. Try attending a hearing to find out how bankruptcy attorneys handle the situation.
Research your state’s bankruptcy laws before filing your petition. There are a lot of pitfalls in the personal bankruptcy code that could lead to issues with your case. You might find that your case become dismissed because of a mistake. Prior to filing any papers, learn about your rights and responsibilities when filing for personal bankruptcy. That way, you will have an easier road.
Before you make the final decision to file bankruptcy, consider the other options you have. Have you been through credit counseling first? Various non-profit companies are out there to give you assistance. They’ll talk to creditors and strive to get both your payments and interest rates lowered. You can even pay your creditors through them.
Avoid large cash advances from credit cards when considering bankruptcy. You may think these debts will just be washed clean, but you are wrong. This will be viewed as fraud, and you may be held responsible for the balances despite your bankruptcy filing.
Watch how debts are paid off prior to filing. Bankruptcy rules generally outlaw repayment of creditors in the 90 days leading up to a bankruptcy filing, a period that is extended to one year when it comes to payments made to family members. Do your research and figure out the laws for you.
Again, it is likely that whatever precipitated a bankruptcy filing was not something on which you look back fondly. But, that does not mean life after bankruptcy has to be negative. Try using the tips in this article so you can make bankruptcy into the most positive experience possible.
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