Because of the way our economy works, driven by consumer debt, bankruptcy claims are becoming increasingly commonplace. The recent downturn in the economy has only exacerbated the situation. Before you even consider going through the bankruptcy process, it is crucial you educate yourself on all things related to bankruptcy so you can make the best decision for you. The below article will provide you with this wisdom.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. You can learn a lot on the U.S. Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Keep with what you have decided to do. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. Consult with a lawyer who can help you along with filing the petition.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.
Safeguard your home. Filing for bankruptcy does not guarantee that you will lose your house. If your home value has gone down, or if there’s a second mortgage, you might be able to keep it. Otherwise, there is a homestead exemption you should look into, as it might let you stay in your house.
Investigate your other alternatives before you decide you have to go with bankruptcy. Sometimes consolidating your existing debts can make them more manageable. Filling for bankruptcy could be a long and stressful process. It will also harm your ability to secure credit in years to come. This is why you must ensure that bankruptcy is the only option left for you.
If you make more money than you need to pay your bills, you should not file for personal bankruptcy. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
If you really want to keep your vehicle, speak with your lawyer about possible choices. Chapter seven bankruptcy often provides for the lowering of payments. If you meet the criteria specific to your state, it may be a good option to consider.
When you file for bankruptcy, you should be very aware of your rights. Bill collectors will lie to you and say you can’t have their bill discharged. There are few debts that can’t be discharged. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.
As noted in the beginning of the article, bankruptcy is a hot topic nowadays, mostly because of the state of the economy. With the advice you have learned from this article, you will be better prepared to deal with bankruptcy, should you have to do so.
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