Bankruptcy is a decision that should be thoroughly thought about. Read through the information in this article and use it to help you make an informed decision. Prepare yourself by learning as much as possible beforehand.
Think through your decision to file for bankruptcy carefully before going ahead with it. You can find services like counseling for credit that consumers can use. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Keep with what you have decided to do. When you file for bankruptcy you may be allowed to recover property like your car, electronics or jewelry that might have been repossessed. If it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Talk with an attorney who can guide you through the process of filing a petition.
Seek a less serious option prior to filing for bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Protect your house. Filing for bankruptcy will not always result in losing your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Once your bankruptcy filing is under way, take the time to decompress a little. The process of filing for bankruptcy can make people a nervous wreck. It is essential to cope with this stress well, to prevent becoming depressed. You must realize that things will get better over time.
You may want to see if you can get lower payments on your vehicle if you want to keep it. Often, you can negotiate a lower payment through bankruptcy. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
Chapter 7
If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. When you file a Chapter 7, your debts will be dissolved. This does not dissolve any co-signers of the debt, and your creditors will continue to try and collect from them.
Make sure you know what you should be doing when you file for bankruptcy. There are many traps in the bankruptcy laws that could trip up your case. It is even possible for your whole petition to be thrown out of court due to errors being made. Make sure you check into your case and see that you have the paperwork filled out correctly. This will help your process go smoother.
Bankruptcy will erase debts. Don’t create any new debts before filing for it. Doing so, is a type of fraud that may result in your having to pay back all money advanced from credit card accounts in the months just prior to your bankruptcy.
As you can see from the above article, bankruptcy doesn’t just happen. You must do a wide variety of things correctly. By taking what you have learned here and applying it, the process of bankruptcy will be much smoother.
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