Although bankruptcy causes stress, it can help financially. There is the need for all your finances to be exposed, and multiple people scouring your financial information. On the other hand though, after your bankruptcy discharge, you can rebuild your finances and stop all the bill collection calls. This article will give you some great tips to help ease the bankruptcy process.
Many people need to file for bankruptcy when they owe more money than they can pay off. If this is the case for you, you should begin to investigate the legislation in your state. Each state has its own set of rules regarding bankruptcy. In some states, your home is protected, while in others it is not. Become acquainted with local bankruptcy laws before filing.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Do not be afraid to remind your attorney of important specifics of your case. Don’t just assume that the attorney will remember it automatically. Don’t fear speaking up since it affects your case and future.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. 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.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Do not hold back anything, and form a sound plan to make peace with your reality.
Investigate any new laws before deciding to file a bankruptcy. Bankruptcy laws constantly change and it’s crucial you know about them so you the process of filing for bankruptcy goes smoothly. Your state’s website should have the information that you need.
Chapter 13 Bankruptcy
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy completely wipes out your debt. With very few exceptions, the connections between you and your creditors will be severed. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. To make the wisest choice, you will need to understand the consequences of each of these two options.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Spend time researching the advantages and disadvantages of filing for each one of these. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Consider filing using chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. Not only can you repay your debts through consolidation, personal property can be kept, as well as real estate. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. The process of filing for bankruptcy can make people a nervous wreck. This stress could morph into clinical depression, if you fail to adequately address the problem. Once your petition is in the hands of the judge, all you can do is wait.
File for bankruptcy before your finances get completely out of control. The judge reviewing your petition will consider your recent behavior, purchases, income and payments when making a decision. Debt could become uncontrollable and by not dealing with them properly, your wages could be garnished or you may find your home in foreclosure. As soon as you know that you are too far over your head, make the move to call an attorney skilled in bankruptcy court, to weigh your options.
There are many pluses and minuses to filing bankruptcy. Never forget that being well-informed is always the key to a successful bankruptcy, no matter what your reasons for filing are. The suggestions you are about to see, will make your bankruptcy easier. Incorporate these tips into the process and watch how much better you feel.
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