Some people think bankruptcy is an option for “losers”; those are usually the first people that think differently when bankruptcy affects them. Often filing for personal bankruptcy happens as the direct result of changing conditions (e.g. the dissolution of a marriage or the loss of a job). No matter how you found yourself looking at bankruptcy as an option, continue reading so that you can learn how to move forward.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. It is important to be aware of this list so you will know what assets are saved. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Only choose a lawyer if you feel like your questions were answered. It is not necessary to make a final decision right away. You have lots of time for consulting with other lawyers.
When a bankruptcy is imminent, retain a lawyer immediately. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A bankruptcy attorney can advise you on how proceed properly.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Consider other alternatives before filing for bankruptcy. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Chapter 13
Consider filing a Chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. However, if you were to miss a payment, the court would dismiss your case right away.
Don’t overly concern yourself with any negative feelings you are having. Many people get feeling of guilt when going through bankruptcy. These are useless emotions, however, and can be harmful to your mental state. Focusing on the positive during this stressful time is a good strategy for coping with your ordeal.
Create a list of all of your finances before filing for bankruptcy. If you forget any items, your filing could be rejected. It does not matter what you think of your financial situation, put the sum amount either way. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
Personal Bankruptcy
Do a little bit of research into the regulations having to do with filing for bankruptcy before you begin the process. Your case may be rife with issues due to pitfalls inherent in codes regarding personal bankruptcy. Small errors could even cause your case to be dismissed. Take the time to research personal bankruptcy before moving forward. This will make the process go as smoothly as possible.
Prior to filing, do not use your credit card to get a cash advance, knowing your debts will be eliminated. Not only is this fraud, but you could end up having to pay back the money, even once you have filed for bankruptcy.
Although it is tempting to toss out the idea of ever owning credit cards again, think again. However, building a good credit history requires that you occasionally use credit. If you don’t use your credit, you won’t be able to make big purchases on credit in the future. Get one credit card and use it wisely to get on the right path.
Bankruptcy should be considered only as a last option. If changing circumstances have caused you to be in this position, you shouldn’t stress yourself out. You will see treasured information in the article that follows.
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