Bankruptcy is a complex process. Bankruptcies come in different types; what you choose is subject to your financial situation and the kind of debts that you have. Before deciding to file for personal bankruptcy, you should learn everything you can about it. This article will help you learn more about personal bankruptcy.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. 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.
After a bankruptcy, you may not be able to receive any credit cards. If this happens to you, think about applying for a couple of secured credit cards. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
Try to get a bankruptcy lawyer that your friends recommend, as opposed to someone that you find from the Internet or yellow pages. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. It is not necessary to make a final decision right away. This will give you extra time to interview several attorneys.
Investigate any new laws before deciding to file a bankruptcy. Bankruptcy laws constantly change and it’s crucial you know about them so you the process of filing for bankruptcy goes smoothly. To know what these changes are, go to your state’s website or contact the legislative offices.
60 Month Period
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. In Chapter 7 bankruptcy, your debts are all eliminated. With very few exceptions, the connections between you and your creditors will be severed. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. You have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
Safeguard your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. You are still going to want to check into homestead exemption either way just in case.
Research Chapter 13 bankruptcy, and see if it might be right for you. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
Bankruptcy is a difficult and stressful process, and you will need all the help you can get. By hiring a competent attorney, you can alleviate some of that stress. Do not choose your attorney based solely on price. There is no need to use an expensive attorney. The important thing that you must do is to get a good attorney. Speak to those around you at work or social settings, who have dealt with this. Make the most of the BBB and consultations with attorneys to increase your knowledge and decision-making ability. You might want to visit a court hearing and observe lawyers handling their cases.
Now you can probably see that filing bankruptcy is a decision that is best thought out carefully before pursuing. If you feel that it is best for you to file for bankruptcy, a qualified attorney can be of great assistance, ensuring you make the best choices.
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