If you are faced with a repossession, the whole process can feel very intimidating. Put your finances in order and file for bankruptcy if this is your only option to get out of debt. Read this article for helpful tips that will get you through this process.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. Don’t touch retirement accounts unless you don’t have a choice. While you may have to use a part of your savings, never completely wipe it out which would only leave you in worse financial shape in the future.
Always be honest when filling out paperwork. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. The lawyer representing you when you file needs to have full knowledge of your financial situation. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Be aware of recent changes, if any, in the bankruptcy code. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. Keep up with your current state’s laws and regulations to figure out what steps you should take.
Protect your house. There are many options available to help protect you from losing your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
If you are making more money than you owe, bankruptcy should not even be an option. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. Filing for personal bankruptcy can be very stressful for the debtor. This stress could actually cause depression, if you don’t combat it. You are getting a fresh start, and things will get better.
If your vehicle is in question, perhaps your attorney can assist in lowering your payments. Chapter 7 usually can help payments be lowered. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
Financial Information
Include your entire financial information when you file for bankruptcy. If you forget information you run the risk of having your petition delayed, or possibly even dismissed. It is better to have something on there that you are unsure about, rather than not include it at all and risk a dismissal. Financial information should include all income, assets and loans.
Of course you could decide to file bankruptcy, but learn of your other choices first. Also remember that many debt consolidation services are a scam that will get you even deeper into debt. Keep these tips in mind to make the best choices for your financial future and to avoid worsening your debt.
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