Are you in debt? Do you think that there is no way to get out of your debt except to file for bankruptcy? The Internet has a lot of advice for you about how to avoid things like bankruptcy. Read the information provided here to see if bankruptcy can be avoided.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. You should always keep money saved for worse times. While dipping into your savings is likely to be necessary, avoid wiping it out completely to prevent leaving yourself with little financial security in the future.
Never shirk on the truth in your petition for bankruptcy. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Whoever provides your legal consultation must be privy to all of your financial information. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Any bankruptcy consultation should be free of charge. When you arrive at a consultation ask plenty of questions. You should also seek free consultations from several attorneys prior to choosing one. You should make a final decision only once all of the questions or concerns are sufficiently attended to. You need not decide right away. So, this gives you plenty of time to consult with several attorneys.
Weigh all of your options before declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Chapter 13 Bankruptcy
Look into filing Chapter 13 bankruptcy. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember that missing a payment to the plan will result in your case being dismissed.
Filing for bankruptcy should not be done on a whim. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. After all is said and done, your creditors will still want their money. For this reason, you may wish to investigate debt repayment programs in lieu of bankruptcy programs.
Take action when the time is right. Timing is critical, particularly when it comes to filing for bankruptcy. While there are times that it is ideal to file soon, there are other times in which you should wait. Discuss the strategic timing of your bankruptcy with your attorney.
If you plan correctly, you can position yourself well. The more you can distance yourself from having to file for bankruptcy, the better off you are. Remember to keep working towards your goal of avoiding bankruptcy. Now is the time to begin making plans for the future.
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