Nobody is enthusiastic about filing for bankruptcy, but sometimes it is simply the right financial choice. If you are thinking about filing for bankruptcy, it’s best to be armed with as much information as possible. In the following article you can pick up some handy advice based on the experiences of other people who have had to deal with the bankruptcy process.
Learn as much as you can about bankruptcy by going to informational websites. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Consider all options before deciding to file for personal bankruptcy. You have other choices, including consumer credit counseling. Bankruptcy will leave a permanent scar on your credit report and before you take this huge step, you should search through every available option first, to help try and limit the damage to your credit.
Never lie about anything in your bankruptcy petition. You may be tempted to try to hide income and personal assets from discovery, but doing so often leads to major complications, monetary penalties and the possibility that your case will be thrown out of court.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. You do not need to make a decision immediately after the consult. You can take as much time as you need to meet with different lawyers.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
See if there is an alternative you can use before declaring bankruptcy. There are numerous programs out there that may assist you with your debt, like a credit counseling program, a nonprofit group, government assistance, etc. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Learn how Chapter 7 bankruptcy and Chapter 13 bankruptcy differ from each other. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Be sure you have no other choice but to seek bankruptcy. You might be better off consolidating your debt or availing yourself of some other remedy. Filing a claim can take a long time and cause much stress. Having a bankruptcy on your record will hinder your ability to get credit in the future. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.
If you can afford to pay your bills, bankruptcy is not a wise option. While filing may seem simple and a way to get out of paying your debts, it does tremendous amounts of long-term harm to your credit report.
After you have finished with the initial process of filing, you can relax and take a breather. Filing for personal bankruptcy can be very stressful for the debtor. If you let the stress get to you you may get depressed if you’re not doing the proper things to fight it. Your life will most likely improve once you’re over this hump, so relax.
No one is happy to be bankrupt; sometimes it is the only option. Having read the preceding piece, you now possess critical insight and knowledge offered by those with actual prior bankruptcy experience. By learning from others that have been in the same situation, it will make it easier on you in the long run.
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