Most people never expect to be in the position of facing bankruptcy. Sometimes it’s the only way out of a nasty financial mess. If you are approaching a bankruptcy situation, reviewing the advice presented below may help you understand what happens next.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Do not tap retirement accounts unless there is no other alternative. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.
Don’t hesitate to give your attorney a heads-up about something she has missed. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It is important to be aware of this list so you will know what assets are saved. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
You must be entirely candid when it comes to declaring assets and obligations in your bankruptcy petition. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. It is not necessary to decide immediately after your consultation. This will give you extra time to interview several attorneys.
Be aware of recent changes, if any, in the bankruptcy code. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To learn about these changes, try contacting your state’s legislation office or checking their website.
Take advantage of the opportunity to consult with a number of bankruptcy lawyers who offer the first visit at no charge. Ensure that your meeting is actually with the attorney, not with a paralegal or an assistant. People in these positions are unable to offer legal advice. Considering several different lawyers can help find someone to trust.
It is possible to keep your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. There are mitigating factors, such as lose of value, or multiple mortgages. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Chapter 13
Consider if Chapter 13 bankruptcy is an option. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Missing a payment under these plans can result in total dismissal by the courts.
Don’t automatically assume that bankruptcy is your only option. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. If you are facing foreclosure, consider a loan modification plan. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.
Once you make the decision to file bankruptcy, you need to start learning about it. Your process will be much simpler if you have a large knowledge base. This guide has given you a lot of information in order for you to approach your finances with a stress-free state of mind.
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