No one ever expects to find themselves having to file bankruptcy. Situations always change and you are left with the only option, which is bankruptcy, but most importantly you need to understand how to work within this situation. The information presented here will help you when the sort of circumstances present themselves.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Prized Possessions
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Keep with what you have decided to do. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. There is a chance that you can get back your property if it has been less than ninety days since repossession. A lawyer will be able to assist you with filing the paperwork to get the items back.
Chapter 13 Bankruptcy
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Every one of your debts will be gone if you decide to go with Chapter 7. Any ties that you have with creditors will be dissolved. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. You must know about the different bankruptcy types, and how each can affect you.
Safeguard your home. You do not have to lose your home in the process of a bankruptcy. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Investigate your other alternatives before you decide you have to go with bankruptcy. You might be better off consolidating your debt or availing yourself of some other remedy. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. It will affect your access to credit in the future. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
Do not let bankruptcy consume you, make sure you make time for your friends and family. Going through a bankruptcy can be an excruciating experience. It is long, full of stress and leaves individuals having feelings of shame and guilt. Lots of people decide they should hide from everyone else until it is all over. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. It’s crucial to spend time with loved ones despite your present financial situation.
Know the rights that you have as you file for bankruptcy. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
When filing for personal bankruptcy, always supply all of your financial information. If you forget any items, your filing could be rejected. Make sure that you add very small sums, even if you believe that they aren’t important. Anything, like a job on the side, assets, like cars, and any outstanding loans should be included.
Long before you file any paperwork dealing with bankruptcy, your first step should be learning the rules and the process. You want to understand what is going to happen when you file for your specific case. If you make an egregious mistake, the judge might even dismiss your case. This is exactly why it’s imperative that you take the time necessary in order to research what you can about bankruptcy. This can save you a lot of time and make the entire process easier.
Consider other options prior to filing for personal bankruptcy. Think about seeing a credit counselor. There are even non-profit companies that may be able to help you. These companies work with creditors to reduce your payments and interest. You make payments to them and they pay your creditors.
You do not lose everything that you own when you decide to declare bankruptcy. Personal property is exempt from bankruptcy claims. You can keep your clothes, your furniture, your jewelery and your primary vehicle for instance. What you are allowed to keep depends on the laws of your state, the chapter under which you file for bankruptcy and how much money you owe to your creditors.
Once you determine that claiming personal bankruptcy is something that you must do, you will need all the advice that you can get. The process will be a lot easier if you have the right information. Hopefully, you can make use of some of this article’s advice and tackle your financial issues with less stress and more effectiveness.
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