Nobody is enthusiastic about filing for bankruptcy, but sometimes it is simply the right financial choice. Going through this ordeal is easier when equipped with lots of solid advice. Keep reading for tips and advice from those with personal bankruptcy experience.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The US Check out the Bankruptcy Institute site and do some research about consumer’s rights. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
It should go without saying, but refrain from lying in your bankruptcy filings. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Don’t hide assets or liabilities when filing for bankruptcy. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Don’t withhold information, and create a smart way of coping with the reality of the situation.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. These laws change regularly and you should stay up-to-date so you can make the best decisions. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Chapter 13
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Under Chapter 7 type bankruptcy, all debts are forgiven. Any ties that you have with creditors will be dissolved. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. Both options have advantages and drawbacks, so do your research before deciding.
Always protect your house. Bankruptcy filings don’t necessarily have to end in the loss of your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Be around family as much as possible. The whole process of filing for bankruptcy is hard. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. Many people tend to hide until their process is completed. But, isolating yourself from others could bring out more depression. This is the reason that you need to take the time out to spend time with everyone you love despite what your financial situation is.
If you are earning enough to cover your bills, don’t file for bankruptcy. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
Don’t forget to enjoy your life once your finances get fixed. A lot of debtors usually get stressed when they file. That stress could lead to complete depression, if you do not take the necessary steps to fight it. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. However, there are few debts that cannot be eliminated, like student loans and child support payments. If you know that a debt can definitely be bankrupted, yet the collector still harasses you, file a report with the attorney general in your state.
Credit Counseling
Exhaust all other option prior to filing personal bankruptcy. One option to consider is credit counseling. There are a number of companies that will assist you, many of which are non-profit. They will negotiate with your creditors in order to reduce your payments and interest rates. The payments you make go to the credit counseling company, and they send that money to your creditors.
In difficult financial situations, filing for bankruptcy is sometimes unavoidable. Having read the thoughts presented here, you can rest assured that you have received information from someone who has faced the very difficulties you face today. Learning from others who’ve had this experience will help you learn from it as well.
This is a limited-time offer. We are not able to guarantee availability if you wait!
