Anytime you are faced with the prospects of filing for bankruptcy, it is not a good situation, but there is some light at the end of the tunnel when you get through this process. Bankruptcy exists in order to provide you with a fresh start. By following the tips presented here, you can transform your life through personal bankruptcy.
Learn as much as you can about bankruptcy by going to informational websites. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
If you are faced with the choice of filing for bankruptcy or using your emergency fund or retirement accounts to pay creditors, opt to file for bankruptcy. You should always keep money saved for worse times. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
Don’t avoid telling your lawyer specific details with your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. Speak up. This is your life, and your future depends on it.
Unsecured Credit
It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If you do, then try applying for a coupe of secured cards. You can exhibit your desire to rebuild your credit this way. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Find out what you exemptions are prior to filing bankruptcy. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. You can determine exactly which of your possessions are at risk by consulting this list before you file. 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.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Take time to research this online and see the pros and cons for filing each one. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Chapter 13
Research Chapter 13 bankruptcy, and see if it might be right for you. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. This lasts for three to five years and after this, your unsecured debt will be discharged. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Know the bankruptcy code backwards and forwards before filing. For instance, a filer cannot transfer assets to someone else for at least a year before filing. Not only that, but the filer cannot lawfully accrue additional debt just prior to filing.
Make sure you know what you should be doing when you file for bankruptcy. There are a lot of pitfalls in the personal bankruptcy code that could lead to issues with your case. Some mistakes could lead to having your case dismissed. Do the proper research on bankruptcy before taking the next step. That way, you will have an easier road.
Consider all available options before deciding to file for personal bankruptcy. Credit counseling is one option you should consider. There are many different non-profit companies that can help you. They will make arrangements with your creditors so you will have lower payments as well as lower interest rates. All you have to do is give them your payments and they handle paying the creditors.
Do your research before hiring a bankruptcy attorney. There are many new or inexperienced newcomers who choose this field to practice in. Make sure that the lawyer you decide to hire has years of expertise and is properly licensed. You can check your state’s bar association to see if the lawyer has had any disciplinary action taken against him, and review sites to see if his clients are satisfied.
Some lawyers offer a phone number that you can give creditors when they call you about your delinquent account. All you have to do is provide the number. Your creditor can then call and confirm that this debt is included in your bankruptcy filing. Then they should not need to call you again.
As previously stated, the reasons for filing for bankruptcy are not generally a happy fairy tale. Afterward, however, you can have an easier time. Bankruptcy is not the end. Follow the tips given here in order to make it a new beginning.
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