Deciding to file for personal bankruptcy is a major life decision, and should not be jumped into lightly. Read the ideas and advice in the following paragraphs so that you are aware of what to full expect and should think of prior to making such a crucial decision. Find out all the information you can before filing for bankruptcy.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this sounds like you, start familiarizing yourself with your state laws. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. For instance, in some states you can keep your home and car, while other states prohibit this. It is important to understand the laws in your state before filing for bankruptcy.
Make sure you keep reminding your attorney about any important details in your case. You cannot expect your lawyer to remember every important detail without some reminder from you. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. The lawyer representing you when you file needs to have full knowledge of your financial situation. Do not hold back anything, and form a sound plan to make peace with your reality.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. A qualified bankruptcy attorney can guide you through the filing process.
Chapter 13
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Make sure you know what each entails so you can make the right choice. The Chapter 7 variety can help you eliminate your debts almost entirely. The ties with the creditor will be broken. If you file for Chapter 13 bankruptcy, however, you will enter into a 60 month repayment plan before your debts are completely dissolved. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Be sure you go on the Internet and do your research to see what’s best for you. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Look at all of your options prior to deciding to file for bankruptcy. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. A plan that can be useful when foreclosure is looming is a loan modification. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.
Make sure you act at an appropriate time. Filing at the right time can make things go much more smoothly. For some people, filing right away is best, however for others, waiting a while is best. Discuss the strategic timing of your bankruptcy with your attorney.
Bankruptcy can cause anxiety and a host of other physical and emotional issues. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Get recommendations and look into other qualifications rather just choosing based on cost alone. The cheapest attorney may not be the best, but the most expensive may not be the best either. Ask people who have used a bankruptcy lawyer for referrals, look them up at your local Better Business Bureau, then schedule free consultations in order to interview them. You might even go to a bankruptcy hearing to watch how a lawyer presents his case.
As you can see from the above article, bankruptcy doesn’t just happen. Many issues need to be handled the right way. By taking what you have learned here and applying it, the process of bankruptcy will be much smoother.
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