Do not approach personal bankruptcy in a capricious manner. Make sure that you know what you are doing every step of the way. The advice in this article will get you off to a good start. Deciding whether or not to file for bankruptcy is a big decision. Proper and thorough research can alleviate some of that pressure.
Never lie about anything in your bankruptcy petition. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Before filing for bankruptcy, hire a qualified attorney. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Chapter 7
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. Your ties with all creditors will get dissolved. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. You have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
When your income surpasses your bills, you should not be filing bankruptcy. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.
Investigate other alternatives before resorting to bankruptcy. Talk to a bankruptcy lawyer to see if a debt repayment plan or reduction in interest rates is a viable option for you instead of bankruptcy. You can apply for a modification of your mortgage if your home is going into foreclosure. The lender wants their money, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. Many times, payments can be lowered through Chapter 7 bankruptcy. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.
After reading this article, you will know how to file a claim bankruptcy. Do not get overwhelmed by the plethora of information available to you. Think back on what you just read. By doing so, you can make better choices in regards to bankruptcy.
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