Information Everyone Should Know If They File For Bankruptcy

It is an unfortunate fact that the topic of bankruptcy is quite common nowadays. Not only the economy, mind you, but people’s spending habits are also to blame for the increase in claims filed. In order to get through the process safely and with a minimum of fuss, you are going to want to thoroughly educate yourself on bankruptcy before you try to file for it. This article will teach you what you need to know.

One of the best ways to learn more about the bankruptcy process is to hit the Internet and look up reputable bankruptcy websites. The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.

If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. Retirement accounts should never be touched if it can be helped. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.

Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.

Do not abandon hope. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. A qualified bankruptcy attorney can walk you through the petition process.

You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Only choose an attorney once all your concerns are answered to your satisfaction. It is not necessary to decide immediately after your consultation. So you have sufficient time to speak with a number of lawyers.

Learn all the latest laws before you file bankruptcy. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.

Think carefully about your different options before filing for bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. It is also possible to do your own debt negotiations; however, be sure to get everything in writing.

Chapter 7

The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 is the best option to erase your debts for good. Any debts that you owe to creditors will be wiped clean. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. Both options have advantages and drawbacks, so do your research before deciding.

Take steps to ensure your home is protected. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.

As noted in the beginning of the article, bankruptcy is a hot topic nowadays, mostly because of the state of the economy. When deciding how to tackle your bankruptcy, make sure that you employ the advice that you read here.