It can be hard, but at times necessary, to file for bankruptcy. When going through this process it is best you have a lot of knowledge on what is about to take place. The information in this article contains information and advice from people who have actually gone through the process.
Millions of Americans file for bankruptcy each year because they can not pay their bills. If you are in this position, you need to be familiar with the laws in your area. Each state has their own bankruptcy laws. You may find your home is safeguarded in one state, while in another it isn’t. It is important to understand the laws in your state before filing for bankruptcy.
Prior to filing for bankruptcy, be sure you have investigated all of your alternatives. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Never shirk on the truth in your petition for bankruptcy. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Be sure you have no other choice but to seek bankruptcy. Consider whether debt consolidation may be a more viable alternative. The whole process of filing for bankruptcy can be a long, and hard one. You will have trouble getting credit down the line. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
Chapter 13
Learn what you can about Chapter 13 bankruptcies. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. When you file for Chapter 13, you can use the debt consolidation plan to repay your debts, while retaining your real estate and your personal property. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Consider that if you even miss one payment, your case will not be considered by the court.
After you have filed for bankruptcy, enjoy your life. It’s easy to be stressed during this time. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. Life will get better after you finally get this situation over with.
You should never feel shame for needing to file for bankruptcy. Feelings of low self-worth, shame and guilt are common for those who have come to the point where bankruptcy is their only option. Wallowing in these emotions benefits no one, and only serve to harm your own mental health. Staying positive and upbeat is the proper way to deal with bankruptcy.
Because of the comes from bankruptcy, you may feel overwhelmed and stressed. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Look beyond the fees a lawyer charges when you make your hiring decision. The cheapest attorney may not be the best, but the most expensive may not be the best either. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. You might be able to view a court hearing. You might be able to watch how your prospective attorney handles the case.
Before you file, make sure you understand the laws as much as possible. For instance, you need to know not to shift assets into someone else’s name in the year leading up to your filing. It’s also prohibted to run up debt on credit cards just prior to filing.
No one is eager to file for bankruptcy, but in many cases, the alternatives are even worse. Now that you have read this article, you have been exposed to some ideas, insights and advice from those who have gone down this road before. You will feel more relaxed about your own path when you learn from people who traveled it before you did.
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