Are your debts out of control and you think that your only escape is bankruptcy? Do not despair, because there are other people in the same boat. Many individuals have turned to bankruptcy as a means of finding relief from financial hardship. So have a look through the contents of this article to see what you should know about bankruptcy.
Never shirk on the truth in your petition for bankruptcy. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Before you file for bankruptcy, find out which of your assets will be exempt from seizure. There are some assets that cannot be seized through bankruptcy, and the law lists those assets. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you aren’t aware of this, you could lose some assets that you value.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. For example, consumer credit counseling programs can help if your debt isn’t too large. Also, if you just contact your creditors and speak to them plainly and truthfully, the odds are good that you can negotiate a better payment structure that you can afford.
Do what you can to keep your home. Filing bankruptcy does not necessarily mean that you will lose your house. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. This is a lot harder. You will have to get this loan approved by your trustee. When meeting with the trustee, bring a budget which shows that you will be able to afford the payment on the loan you are trying to get. You also have to prepare yourself to explain the reasons you need to buy the item.
Before filing personal bankruptcy, consider other options. One of these choices is consumer credit counseling. You can get assistance from non-profit companies. They will negotiate with your creditors in order to reduce your payments and interest rates. You will pay them, and in turn, they will pay the people you owe money to.
Go over the debts you are currently paying off before filing for bankruptcy. Bankruptcy rules generally outlaw repayment of creditors in the 90 days leading up to a bankruptcy filing, a period that is extended to one year when it comes to payments made to family members. Learn the rules regarding bankruptcy before making any final financial decisions.
Credit History
After filing bankruptcy, many people refuse to use credit cards or get loans. However, building a good credit history requires that you occasionally use credit. If you don’t ever use credit, your credit history will not improve, and you may not be able to purchase important things like a home and car. Get one credit card and use it wisely to get on the right path.
Select a bankruptcy attorney wisely. Because of the increase in bankruptcy filings, this field attracts a lot of newer, inexperienced attorneys. Be certain your attorney has enough expertise and has a valid license. Use the Internet to look at lawyer’s disciplinary records, background, and client ratings.
Make sure that you include every one of the debts you would like discharged in your bankruptcy filing paperwork. If you fail to include a debt in your filings, you will still owe it when your bankruptcy is discharged. You need to ensure that you account for every debt, so you do not miss any that are eligible for being discharged.
Interview several attorneys before you hire one and ask questions about education and experience. There are lots of lawyers available who will be happy to take on your case. The inexpensive lawyers will probably fail in the knowledge department. Avoid the temptation to jump on board.
Visit forums online to chat with others who are also going through bankruptcy. Filing for bankruptcy can make you feel extremely alienated, even from your close friends. The Internet gives you a place to talk about your hardships and seek advice from those who’ve previously filed for bankruptcy.
Always make sure your documents are accurate. Realize that mistakes can occur at any point in the process and the accuracy of the information is your responsibility. While your attorney is a professional, they are likely to be handling multiple cases at the same time. They might not keep every little detail of their many cases straight. This is why it’s vitally important for you to personally double-check the information that goes onto your bankruptcy paperwork.
Like you have heard, you are not alone in your financial problems. Others just like you are filing for bankruptcy as well. By reading this article, you have given yourself an advantage that many of these people lacked. The tips in this article should give you a good head start on your bankruptcy filing.
This is a limited-time offer. We are not able to guarantee availability if you wait!
