No one ever thinks that they will go through a bankruptcy. It is important to know what steps to take when your circumstances change and there’s nothing you can do about it. If you’re in this boat, read on for some helpful advice.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If this is your case, you should do some research about bankruptcy laws in your state. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. Some states protect your home, and others do not. Know what the laws are in your state before filing.
Before filing for personal bankruptcy, make sure you are doing the right thing. Look into other options, such as consumer credit counseling. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
Never shirk on the truth in your petition for bankruptcy. You might feel tempted to not declare certain assets in your bankruptcy in order to protect them from forfeiture, but if you’re found out, the process could take longer, or worse, you might be banned from filing for bankruptcy completely.
Don’t feel bad if you need to remind your attorney about any specifics of your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Completely Honest
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. The lawyer representing you when you file needs to have full knowledge of your financial situation. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Talk to the lawyer and not his assistant, who may not be legally able to help you. Looking for an attorney will help you find a lawyer you feel good around.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Research them online to see the positive and negative aspects of each one. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Interest Rates
Don’t automatically assume that bankruptcy is your only option. 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. If a foreclosure is on your horizon, look into loan modification plans. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. Many times creditors are happy to work with you to ensure that you will repay your loan.
Before declaring bankruptcy, it is important to know your rights. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. 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. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
If you are going to file for bankruptcy make sure you are prompt. What a lot of people do is ignore the fact that they are in a financial crisis and think that their debt is not going to catch up to them. It is too easy for debt to mount up and become uncontrollable, which could lead to loss of assets or wages. Once you realize that the debt you have is too much for you to handle, start thinking about talking to a bankruptcy attorney, they can guide you throughout the entire process.
Make sure you are aware of all your options before you file for bankruptcy. One of these choices is consumer credit counseling. May non-profit companies are available to help you. They will negotiate with your creditors in order to reduce your payments and interest rates. They collect payments from your and then pay the creditors.
If you decide you need to file bankruptcy, it is important that you have helpful advice. The process will be much simpler if you are well-informed. The information in this article is designed to put your mind at ease, which means you can deal with your bankruptcy in the most efficient way possible.
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