Just thinking of filing for bankruptcy can scare a person. Growing debt loads combined with continuous family obligations can cause an incredible financial strain. If that thought scares you or if you’re already living in this horror, you can use this advice.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The greater your body of knowledge, the better prepared you will be to make the decision of whether or not to file and to make certain that if you do file, the process is a smooth one.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Retirement accounts should never be accessed unless all other options have been exhausted. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Do not hesitate to remind your lawyer of any details regarding your case. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Just ensure that you take necessary precautions, as missing one payment can result in the court dismissing your case.
Know your bankruptcy rights. Many creditors or bill collectors might tell you your debts cannot be included in a bankruptcy. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
Chose the proper moment to make your move. Timing is important, and that is especially true when filing for bankruptcy. In some situations it is best to file as soon as possible, but in other situations it is best to wait until after you’ve gotten through the worst of it. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
Personal Bankruptcy
Before petitioning, you need to know what the personal bankruptcy rules are first. There are a lot of pitfalls in the personal bankruptcy code that could lead to issues with your case. Some mistakes can even lead to your case being dismissed. Before you go ahead, devote a little time to research and the topic of personal bankruptcy. Doing this can make the process simpler.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. This could be considered as fraud, and you may even be forced in paying all of it back to credit card companies.
Adopt a positive attitude toward filing for bankruptcy and researching the topic. Yes, it may be hard to admit the need for help, however, if you try to stall from getting help your situation can only worsen. Going to a lawyer as soon as you can is the best to remain in control of your situation.
Before you file, you have to quickly think to be more responsible fiscally. Do not take on more debt or use more of your current credit. Judges and creditors consider current history, as well as past history when adjudicating personal bankruptcy. Your most recent behavior should show that you realize the error of your ways and have changed course to become more fiscally responsible.
A few months after bankruptcy is complete, get your credit report copies from the 3 credit reporting agencies. Be sure these reports are accurate and correct in regards to all of your closed accounts. If you find any discrepancies, immediately follow up on them so you can continue to repair your credit.
Getting Divorced
Rethink getting divorced if you are in a bad financial situation. Divorce can bring on a lot of major changes, finances being one of them, and sometimes filing for bankruptcy is the only option. A great way to avoid this is by not getting divorced.
Certain attorneys offer a phone service that creditors are directed to when they want to speak with you about debts you may owe. Creditors can receive confirmation that you are indeed filing for bankruptcy protection from them if they give that number a call. Then, you won’t have to worry about any further harassing phone calls.
Be certain that all of the debts you are presenting for consideration in your bankruptcy are actually ones that can be considered. This will save you time and money. There are debts (e.g. student loans) that will stay listed within your credit history even if you file for bankruptcy. You may want to consider consulting a loan consolidation service or credit repair agency instead of filing for bankruptcy.
Those who fear bankruptcy have a good reason to do so: It can be a downright scary experience! You may have lived in fear of it before, but you no longer have to now, thanks to this article. Start making use of this bankruptcy advice right now and give your financial life a fresh new start.
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