When you file for bankruptcy, it can not be described as a simple procedure. There are multiple ways you can file for bankruptcy, and the one that best fits you will depend on your financial situation and what you owe. That’s why you should research personal bankruptcy prior to deciding whether or not you should file. The tips included in this article should give you some direction as you go through the process of deciding to file and filing for personal bankruptcy.
It is important to remind your lawyer of any details that may be important to your case. Don’t assume that he’ll remember something from a month ago; tell him again. Speak up if something is troubling you, as this is your future we are talking about here.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code has lists of various asset types that are exempt during the process. It’s crucial to read that list before filing to see which of your prized possessions can be seized. If you fail to do so, things could get ugly.
Do not abandon hope. You might even be able to get back secured property that has been repossessed in the 90 days before filing. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Consult with a lawyer who is able to assist you in the filing of your petition.
Always weigh your options carefully prior to deciding to dive head first into filing a bankruptcy claim. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
Chapter 7
You need to educate yourself on the differences between Chapter 7 and Chapter 13. Every one of your debts will be gone if you decide to go with Chapter 7. All happenings with creditors will disappear. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. Look into both types of bankruptcy before deciding which one would suit your particular needs.
A free consultation is standard for bankruptcy attorneys, so shop around before settling on one. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. This is harder. You will need to secure the trustee’s approval for any new debt obligation. Draw a budget up and show how you can pay the newer loan payment. You will need to be able to explain why the purchase is necessary.
When filing for personal bankruptcy you should always be aware of your rights. Some bill collectors will tell you that your debts can’t be bankrupted. There are a few debts that cannot be cleared, such as student loans and child support, but be sure to know the details when dealing with debt collectors. Should you face a creditor like this, and you are informed that the debt is not valid under the bankruptcy. These types of infractions should be reported.
Act when the time is right. Timing is very important when it comes to personal bankruptcy filings. Sometimes, filing as soon as you can is best, while other times, it is wise to get past the worst problems first. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
As you can see, you should give bankruptcy a lot of thought before deciding whether or not you should file. Should you determine that it is a wise move considering your personal circumstances, you need to consult with a lawyer who has handled many other bankruptcy cases.
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