Sadly, bankruptcy is now a household word. The economy has hit many people from all walks of life hard. You need to approach bankruptcy with a little knowledge so that you can simplify the process. The following tips are going to help clarify some bankruptcy confusion for you.
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Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more you know, the more you’ll knwo that you’ve made a wise decision and the you’re making sure your bankruptcy goes as smooth as possible.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code has lists of various asset types that are exempt during the process. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Keeping secrets or trying to outsmart everyone is not a wise move.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Talk to the lawyer and not his assistant, who may not be legally able to help you. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Safeguard your most valuable asset–your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Research them online to see the positive and negative aspects of each one. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Be sure that bankruptcy really is your best option. Consider whether debt consolidation may be a more viable alternative. There is not easy process associated with personal bankruptcy. It will have a long-lasting effect of your future credit opportunities. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.
There are many ways to resolve financial difficulties other than bankruptcy, and you should investigate all of them first. Before filing, talk with an attorney who can help you weigh all of your options. A plan that can be useful when foreclosure is looming is a loan modification. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. Many times creditors are happy to work with you to ensure that you will repay your loan.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. Chapter 7 usually can help payments be lowered. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
Make sure you understand your rights as you file for bankruptcy. It is not unusual for creditors to claim that their debt is not able to be discharged. However, there are few debts that cannot be eliminated, like student loans and child support payments. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
As mentioned, bankruptcy is a popular topic today because of the economy. If you want to know that you are doing the right thing when dealing with your bankruptcy be sure to put the information you read in this article to use.
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