Bankruptcy is very common in today’s economic climate. Many people can thank the economy for that! Prior to making the decision to file a petition, you need to have a thorough understanding of the topic so that you act in your own best interest. This article is going to give you that knowledge.
Don’t look at bankruptcy as a first step. Look at all the other options you may have first. Consider any other options that are available to you, such as consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Do not hesitate to remind your lawyer of any details regarding 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. It’s your financial future that is in his hands; don’t hesitate to speak up.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you aren’t aware of this, you could lose some assets that you value.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. The person you choose to file with needs to know both the good and bad aspects of your finances. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Always protect your house. Filing for bankruptcy will not always result in losing your home. 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. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Determine if bankruptcy is necessary. It may be that all you really need to do is consolidate some of your debts. Going through a bankruptcy is a long and stressful process. The future of your credit will be greatly affected. Needless to say, if some alternative strategy will allow you to take care of your debts, you should give it a try before resorting to bankruptcy.
Repayment Plans
Look into all of your options before you choose to file for bankruptcy. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. If a foreclosure is on your horizon, look into loan modification plans. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
Timing is everything. Timing is important, and that is especially true when filing for bankruptcy. In certain situations, you should file right away, but other situations will warrant you waiting. The professional advice of a bankruptcy lawyer can help you pin down the best time to file given your current financial state.
Facing bankruptcy is not a fun situation and cause a lot of stress and anxiety. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Do not choose your attorney based solely on price. Quality is far more important than expense when it comes to a good bankruptcy attorney. Do not choose an attorney until you have interviewed them, checked with the better business bureau and checked their standing with the bar association. You might be able to view a court hearing. You might be able to watch how your prospective attorney handles the case.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. Forgetting to add these may cause your petition to be delayed, or even dismissed. It is better to have something on there that you are unsure about, rather than not include it at all and risk a dismissal. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
As mentioned, bankruptcy is a popular topic today because of the economy. Use the tips you just read to make good decisions and remain in control of your financial situation.
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