Filing for bankruptcy is not a simple process. Because of the various types of claims out there, and also the different ways in which you can approach filing, your particular situation will be personal to you. Prior to filing your petition, you really need to gain an understanding of how personal bankruptcies work. The advice in this article can be a good starting point for you.
Many people need to file for bankruptcy when they owe more money than they can pay off. If this is happening to you, then learn about the laws where you live. There are greatly varying laws concerning bankruptcy, so it is important to make sure you are getting the correct information. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Be sure you educate yourself on local laws prior to filing.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. As with everything in life, the more you know about filing a claim, the better off you’ll be. You can properly prepare when you know what you’re preparing for.
It is important to remind your lawyer of any details that may be important to your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. Speak up. This is your life, and your future depends on it.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Whoever provides your legal consultation must be privy to all of your financial information. Don’t withhold information, and create a smart way of coping with the reality of the situation.
Any bankruptcy consultation should be free of charge. Most lawyers offer free consultations, so consult with a few before settling on one. Do not make any final decisions until every question you have has been answered. You do not have to give them your decision right after the consultation. Be sure to talk with a number of lawyers, and compare the information you receive.
Be aware of recent changes, if any, in the bankruptcy code. These laws change regularly and you should stay up-to-date so you can make the best decisions. To learn about the changes, you should check out the website of your state’s legislation or you can call their office.
Prior to declaring bankruptcy you really need to be sure that you’ve exhausted all your other options first. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You should also try negotiating a payment plan with your creditors; make sure you get a written agreement of the new payment plans.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Be certain you talk to the lawyer, himself, instead of a paralegal or assistant; those people aren’t allowed to give legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Repayment Plan
Don’t automatically assume that bankruptcy is your only option. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. Loan modification plans can be helpful for those facing foreclosure. Your lender can adjust your loan in many ways including extending the time you have to pay, reducing your interest rate, or canceling some of your late fees. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
You have probably realized that you should carefully evaluate your decision to file for bankruptcy before proceeding. If you know what makes sense for you, you can work with an experienced bankruptcy lawyer and get ready to experience a clean financial slate.
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