Most people consider bankruptcy as a choice of losers, but quickly change their mind when it directly affects them. Certain life events can make personal bankruptcy the only viable option available. If filing for bankruptcy is your only choice, educate yourself on the process.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. Only choose a lawyer if you feel like your questions were answered. Take your time before you decide to file after you meet with your lawyer. That gives you the chance to speak to a number of lawyers.
Learn the newest bankruptcy laws before filing. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Chapter 13 Bankruptcy
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. In Chapter 7 most of your outstanding accounts will essentially be erased. Any debts that you owe to creditors will be wiped clean. Chapter 13 bankruptcy though will make you work out a payment plan that takes 60 months to work with until the debts go away. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Learn the benefits and drawbacks of each type before deciding which is right for you. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Do not forget to make quality time for friends and family members. Going through bankruptcy is a lot of stress. It can be long and drawn out which adds lots of stress and leaves people feeling empty inside. Many people decide to hide away from the world until the process is over. Isolating yourself from your loved ones can lead to feelings of depression. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. Sometimes, as part of the bankruptcy filing, your auto loan can be restructured so that you pay less each month. The vehicle must have been obtained more than 90 days before filing and be a loan with high interest. You must also have consistent work history.
As you are heading towards a bankruptcy filing, don’t be tempted to run up cash advances on your credit cards in the belief they will be erased in the legal proceedings. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
When you file for bankruptcy remember that you are not going to lose all your assets. Personal property can be kept. These personal items include clothing, jewelry, household furnishings, electronics and other similar items. This depends on the laws in your state, the bankruptcy type for which you file, and your unique finance situation, but it may be possible to retain your home, car and other large assets.
Find out how much you owe to your different creditors. This will be included in your bankruptcy filing, so include every entity that you know you owe money to. Go through your papers and records so you are certain about actual amounts. Take your time and make sure all the numbers are correct.
Take the time to find the best bankruptcy attorney around. There are a lot of new, inexperienced bankruptcy attorneys. Investigate the attorney you are considering hiring and review his references. The Internet can help you check a lawyer’s disciplinary record, as well as client ratings and background information.
Make sure that you include every one of the debts you would like discharged in your bankruptcy filing paperwork. If you fail to include a debt in your filings, you will still owe it when your bankruptcy is discharged. You should have everything in writing with dates and signatures to prove that your debts have been discharged, or you could be asked to pay these debts.
No matter how bad things are when you are filing for bankruptcy, be honest. Lying about your assets and debts can get you into serious trouble. This is illegal. If you lie in the recording of your debts and assets, you may end up in prison for quite some time.
Once you turn over every other stone and have yielded no answers, then you might find bankruptcy necessary. No matter how you arrived at this place, there is help available to reduce the stress you are under. Reading this article will result in you finding useful information.
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