It may not be an easy decision to come to; however, bankruptcies are often necessary. It is always best to go forward, armed with the best information and assistance you can find. You need to know what you are up against. The information in this article contains information and advice from people who have actually gone through the process.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Never lie about anything in your bankruptcy petition. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Whoever provides your legal consultation must be privy to all of your financial information. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
Chapter 7
You need to educate yourself on the differences between Chapter 7 and Chapter 13. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. This type of bankruptcy ends any relationship you might have with creditors. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. Both options have advantages and drawbacks, so do your research before deciding.
Filing for bankruptcy is not the best choice if your monthly income is enough to cover your bills. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
Remember to have fun with your life when you’re done with the filing process initially. It is common for people to stress when filing. Make sure you take care of your part and let your attorney do the rest. Things will be sunnier after you take positive steps to move forward.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. Many times, payments can be lowered through Chapter 7 bankruptcy. The requirements are that your car purchase has to be greater than 910 days before filing, must have a loan that is high in interest, and must have a solid work history.
Chapter 7
Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. Sadly, this will not be the case for your co debtor. Your creditors may simply turn their attention to your hapless acquaintance.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. However, it can be more difficult. You will need to secure the trustee’s approval for any new debt obligation. Create a budget and prove you can afford a new loan payment. You also need to be prepared to answer questions about your need for the new item.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. Only a small number of debts are not dischargeable, including student loans and child support obligations. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Act when the time is right. Timing is very important when it comes to personal bankruptcy filings. While there are times that it is ideal to file soon, there are other times in which you should wait. Speak with bankruptcy attorneys for a time frame for filing with your situation.
Nobody wants to file for bankruptcy, but in some cases the situation becomes necessary. Having studied the information in this article, hopefully you are better prepared to deal with the bankruptcy process. By learning from others who have been there before, it will make things a lot easier on you.
This is a limited-time offer. We are not able to guarantee availability if you wait!
