There are few financial decisions more momentous than determining whether or not it is time for a bankruptcy filing. You should know all that you can about how it works. The information below can guide you. No matter what decisions must be made, they are easier to make with solid information.
Be sure you’re doing what’s right before you file for bankruptcy. Other available options include consumer credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Most attorneys offer free consultations, so meet with a number of them before you retain one. Choose to file only if your lawyer has convinced you that this is the best decision. After the consultation, you are not immediately required to come up with a decision. You have lots of time for consulting with other lawyers.
If you are about to file for bankruptcy, then make sure you hire a lawyer. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Do not forget to make quality time for friends and family members. Going through bankruptcy is difficult. This long and stressful process can leave a person feeling guilt ridden, unworthy and ashamed. Avoidance of friends of family during the process is not uncommon. This is not a good idea because staying alone could cause serious problems with depression. Time spent with people who care about you can give you new perspective on your financial situation.
Avoid filing for bankruptcy if you make more money than your monthly bills. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
Filing for bankruptcy should not be done on a whim. A lawyer that specializes in bankruptcy law can help advise you of other options, such as repayment plans and reducing interest rates to relieve some of the burden. You can apply for a modification of your mortgage if your home is going into foreclosure. These plans allow you a longer pay off period by extending the term of the loan, reducing the rate of interest or forgiving late fees. When push comes to shove, creditors want their money, and they are willing to make concessions to get it and prevent the debtor from declaring bankruptcy.
If you intend to file bankruptcy soon, you may want to discontinue paying all debts. Bankruptcy laws generally don’t cover situations which occurred within a short time frame prior to filing, such as the previous 90 days worth of credit card debt. Before making any final decision concerning your finances, you should be educated on the rules of bankruptcy.
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. Filing for bankruptcy is a hard decision to make but if you wait too long, your situation will get worse. Going to a lawyer as soon as you can is the best to remain in control of your situation.
You should keep in mind that in the long run, bankruptcy can have a more positive impact on your credit score than continually missing payments towards your debt. Bankruptcy can be seen on your credit history for 10 years, but you can begin repairing the damage immediately. One of the nicest things about bankruptcy is that it gives you a fairly fresh start.
If you’re thinking about filing bankruptcy, also think about hiring a lawyer. A qualified attorney could give you advice that is necessary for filing and could represent you as you go to court making the process simpler. Your lawyer also knows how to properly file the paperwork and can answer any questions that you have.
You should obtain a copy of your credit report from all three reporting agencies soon after you declare bankruptcy. Be certain that the report is an accurate representation about your discharged debts and accounts for credit cards that are closed. Challenge discrepancies as soon as possible in order to repair your credit.
Getting Divorced
If you’re thinking of getting divorced, evaluate the financial consequences of doing so. Many people file for bankruptcy right after getting divorced because they cannot deal with their financial hardships. Reconsidering divorce is usually the best option in any case.
Some lawyers have a phone service creditors can call instead of you. You can give all of your creditors this number so they can confirm that the account is included in a bankruptcy filing. This will prevent them from calling you in the future.
Chapter 7
If after filing for Chapter 7 you aren’t qualified for Homestead Exemption, there is a possibility you can file Chapter 13. Some scenarios will require a conversion from Chapter 7 to Chapter 13, dependent on what your attorney says.
Now you know that there a variety of methods you can use when it comes to filing for bankruptcy. Avoid being overwhelmed by too much information. Take a minute to think about the tips you learned here. Take your time and think carefully about your decision before taking action.
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