Filing for personal bankruptcy is nothing kid around about. It is crucial you educate yourself on the entire bankruptcy filing process. The information below can guide you. No matter what tough decisions you have to deal with, you can do it!
Personal Bankruptcy
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States Department of Justice, American Bankruptcy Institute, along with many other websites can provide you with the information you need. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
Do some research to find out more about Chapter 13 and Chapter 7. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. 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. Both options have advantages and drawbacks, so do your research before deciding.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. 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.
Avoid filing for bankruptcy if you make more money than your monthly bills. Bankruptcy might seem like a good way to get out of paying your bills, but it will devastate your credit for the next ten years.
After you have filed for bankruptcy, enjoy your life. Filing for personal bankruptcy can be very stressful for the debtor. Make sure you take care of your part and let your attorney do the rest. Your life will see improvement after you get past the bankruptcy.
Be sure you’re acting when the time is right. Timing is important, and that is especially true when filing for bankruptcy. In some cases, you should file for bankruptcy right away, but in others, there may be reasons why filing quickly would be a bad idea. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
Watch how debts are paid off prior to filing. The bankruptcy code stipulates that you cannot make certain payments to creditors or family for specified periods of time before filing. Do your research rather than making financial decisions blindly.
List any debt you have. You need this list to file for bankruptcy, so be certain you do not forget anything. Search your financial records to be certain that every amount on your list is exactly correct. Don’t rush through the process if you desire that the amounts get discharged the right way.
When a bankruptcy becomes a possibility, you should look at retaining a lawyer. A qualified lawyer can access your need to file, go to court with you and make the process simple. Your attorney will be able to answer any questions you may have and will fill out the appropriate forms to file bankruptcy.
When you file for bankruptcy, you need to list every single debt that you want wiped out. If you don’t include all your debts, the ones you leave out won’t be covered by the bankruptcy. It’s your duty to be sure you have everything written down that is important because some debts that could have been discharged may be missed.
No matter how bleak the situation; always be honest. It’s a big mistake to lie about your financial situation or your assets. Not only will it affect your filing, it is illegal. You can get prison time for lying about assets or debt.
In the event your case for bankruptcy is dismissed due to an error you made, you may be able to file again. Typically though, your only luxury is an automatic stay, lasting for 30 days from the date of filing, if it was dismissed. It is possible to have the stay extended by making a showing that the error was excusable and that you should be permitted to file again.
Remember to check for accuracy. You might have an attorney fill out the paperwork, but the court will penalize you, not the attorney, if there is inaccurate information filed on your behalf. Always remember that attorneys usually take on multiple cases at a time, which means they’re not always going to get 100% of the details right. It’s important you ensure there are no mistakes, and that any paperwork being filed for you is accurate.
Do not delay in filing your personal bankruptcy case. Once you have decided that you need to file bankruptcy, it is best to get on with it. If you procrastinate on this matter, your stress levels will only go up and your financial options will only get narrower. This unfortunate turn of events can affect your life quite negatively. When you file sooner, you’ll do a lot better.
As you can see by now, there are different ways of filing for personal bankruptcy. Don’t suffer from information overload! Think back on what you just read. The more level-headed you can remain throughout this process, the better the choice will be that you make.
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