If you are facing the repossession of valuables, such as cars or jewelry, you may be feeling some fear. Filing for bankruptcy can help ease your financial burdens and put an end to harassing phone calls from debt collectors. Continue ahead for some excellent tips that will ease you through the bankruptcy process.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Unsecured Credit
You may still have trouble receiving any unsecured credit after a bankruptcy. If you find yourself in this situation, you may want to think about getting a secured card or two. Having a credit card of any type will allow creditors to realize that you’re attempting to work in the right direction to repair your credit. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. Without reading the list, you may be shocked at which possessions can be taken from you.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Your attorney and trustee should be privy to all information about your finances. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Only choose a lawyer if you feel like your questions were answered. Take your time choosing the right attorney to assist in your bankruptcy. You can take as much time as you need to meet with different lawyers.
Investigate any new laws before deciding to file a bankruptcy. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. To learn how the law has changed recently, go online and check your state’s website, or call the state government and ask them.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Looking for an attorney will help you find a lawyer you feel good around.
It is imperative that you know for sure that bankruptcy is the option you need. Some people have great luck with handling debt with debt consolidation, which means taking out only one loan to pay off many loans. Bankruptcy is a stressful process. It will also make it tough for you to secure credit after your filing is complete. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
Pick the right time to file. When it comes to filing for bankruptcy, your timing is important. Sometimes you should file immediately; however, there are times when it is better to delay until the worst has passed. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Don’t drag your feet when it comes to filing bankruptcy. 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. Debt can snowball very fast, and by ignoring it, you increase the chances of worse problems, such as foreclosure and wage garnishments. As soon as you stop denying that your debt is unmanageable, seek the advice of a good bankruptcy attorney.
Try your hardest to present a complete representation of your current financial situation. If you forget any items, your filing could be rejected. No sum is too small to be included; err on the side of caution and include everything. Include any income from jobs that you do on the side or assets, such as property and vehicles.
Don’t take out big cash advances from any of your credit cards prior to filing for bankruptcy, taking advantage of the fact that those debts will later be erased. Not only is this fraud, but you could end up having to pay back the money, even once you have filed for bankruptcy.
While personal bankruptcy can always be an option, don’t do it before looking at other options. Be careful, because many services offering debt consolidation are scams, and can leave you deeper in debt than you were already. Keep the advice from this piece in mind to help you make smart financial decisions.
This is a limited-time offer. We are not able to guarantee availability if you wait!
