Filing for bankruptcy is not a simple process. You need to know what type of bankruptcy you should file for based on your current finances and the type of debt you have. Before you decide to file for personal bankruptcy, you need to educate yourself about it. This article will give you some of the important facts about bankruptcy.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
If you’re going to file bankruptcy, you need an attorney. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. Your state’s website should have the information that you need.
See if there is an alternative you can use before declaring bankruptcy. Those with smaller debts may find use in a program for consumer credit counseling. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
If you are earning enough to cover your bills, don’t file for bankruptcy. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Before you decide to file for Chapter 7 bankruptcy, consider how it could affect other people on your credit accounts, such as family members or business partners. Speak to an attorney or read the bankruptcy laws in your state to find out if certain loans can be excluded from your filing. However, creditors can demand co-debtors pay the amount in full.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. Of course, it’s difficult. Your trustee can help you acquire a new loan. Draw up a budget, demonstrating that you can afford the new loan payment. You should also be prepared to explain why you need to purchase the item.
Be decisive at the correct moment in time. Timing is critical, particularly when it comes to filing for bankruptcy. There are situations in which it is in your best interest to file immediately, but other times it is advisable to wait. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
Bankruptcy is not a decision to be taken lightly. Should you determine that it is a wise move considering your personal circumstances, you need to consult with a lawyer who has handled many other bankruptcy cases.
This is a limited-time offer. We are not able to guarantee availability if you wait!
