There are many different reasons why the debt could have piled up on you and became overwhelming. What’s important now isn’t how it happened but rather what you intend on doing in order to handle it. Wiping the slate clean means having a new lease on life. By following the tips presented here, you can transform your life through personal bankruptcy.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
If a personal recommendation comes your way, this should be a lawyer you focus on. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Do some research to find out which assets you could lose by filing for personal bankruptcy. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. This will ensure that you do not have any surprises once you have filed bankruptcy.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. It is necessary to be open regarding both the positive and negative aspects of your financial life. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. 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. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Chapter 13
There are two types of bankruptcy filing, Chapter 7 and Chapter 13 so make sure you know the differences. In Chapter 7 most of your outstanding accounts will essentially be erased. This type of bankruptcy ends any relationship you might have with creditors. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Your most important concern is to protect your home. Bankruptcy doesn’t always mean you’ll lose your home. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Once the initial filing period is over, ensure that you are getting out and enjoying life. Many debtors stress-out during the time of filing. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Once your petition is in the hands of the judge, all you can do is wait.
Don’t wait to file for bankruptcy. Lots of people turn the other shoulder towards their financial woes and hope that they’ll disappear eventually. However, you should never do this. Debt can become a big problem rapidly, and if you fail to handle it, you can face foreclosure or garnishment of wages. As soon as you stop denying that your debt is unmanageable, seek the advice of a good bankruptcy attorney.
As mentioned, the events that cause bankruptcy are not happy. But, that does not mean that your post-bankruptcy life cannot be fantastic. If you use these tips, you may be able to use bankruptcy to make your life better going forward.
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