Always take the bankruptcy process seriously. Make sure that you know what you are doing every step of the way. Use the tips written in this guide to help you go in the proper direction. Whenever you have a difficult decision to make, you can use information like what is in this article to make a smart choice.
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. Retirement accounts should never be accessed unless all other options have been exhausted. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
It should go without saying, but refrain from lying in your bankruptcy filings. 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.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are way too many people ready to take advantage of financially-strapped individuals, so you must ascertain that your attorney can be trusted.
Personal Bankruptcy
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Consult with a lawyer who is able to assist you in the filing of your petition.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. It is not necessary to come to a decision immediately following the meeting. This offers you the opportunity to speak with other attorneys.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Take time to research this online and see the pros and cons for filing each one. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Unsecured Debt
Chapter 13 bankruptcy might be a good option, so don’t overlook it. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.
Look into all of your options before you choose to file for bankruptcy. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. After all is said and done, your creditors will still want their money. For this reason, you may wish to investigate debt repayment programs in lieu of bankruptcy programs.
Bankruptcy can be overwhelming to most people, and can be quite stressful. The best way to lessen this stress is to employ a lawyer, who can handle most of it for you. Don’t let cost be the sole factor in who you hire. When it comes to choosing the right attorney, consider quality before cost. Look to the bureau for better business, consultation, as well as others who have formerly experienced bankruptcy for more information about lawyers. If you wish, you can attend a bankruptcy hearing and witness your attorney in action.
As you’ve seen from this article, there is more than one way to go about filing for personal bankruptcy. Don’t stress about the amount of information before you. Take a few minutes to think about these tips. Afterwards you will be sure to make a good decision.
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