There are quite a number of people who have been affected by the economy, and now find themselves buried in debt. Filing chapter 7 or 11 can be the last option for many people. If you are having financial difficulty, it is a good idea to research all your options, including bankruptcy. Keep reading to see if this is a viable solution for you.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. 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.
Hire a lawyer if you plan on filing for bankruptcy. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. A qualified bankruptcy attorney can guide you through the filing process.
Do some research about laws and legislation before filing. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
It is possible to keep your home. It isn’t inevitable that you will lose your house when you file for bankruptcy. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Another option is the homestead exemption that has certain income and financial requirements, but may also allow you to keep your home.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. 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.
Bankruptcy should not be filed by anyone who makes more than their bills cost. Understand that while declaring bankruptcy will eliminate many of your debts, you will have difficulty obtaining credit and will pay more in interest for the credit you do receive for at least seven years.
Make sure you consider implications of bankruptcy before filing for Chapter 7. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. However, creditors will want to hold your co-signer responsible completely.
Don’t file for bankruptcy without knowing your rights. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. There are, indeed, some debts that cannot be bankrupted. Among them are student loans, child support and alimony payments. If your creditors are telling you any other kind of debts cannot be cancelled, get a written proof and send it to the general office of your state’s attorney to report this illegal behavior.
Financial Information
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. If you forget to add these, your petition could be delayed or dismissed. Even small amounts of money contribute to your overall financial picture, so do not exclude them. This financial information may include income from side jobs, vehicles you own and loans you have not paid off.
You should now understand that there is more than one path to take when it comes to bankruptcy. If you approach it from just the right way and with a crystal clear, aware mind, you will experience the relief you wanted and will help you to get up again.
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