Having to file for personal bankruptcy is never a positive experience. A bankruptcy will stay on your record for years and can affect the types of credit you are able to get. If you decide to file bankruptcy, research the laws in your state and retain the services of a qualified attorney.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If this is the case for you, you should begin to investigate the legislation in your state. When it comes to bankruptcy, states have varying laws. You may find your home is safeguarded in one state, while in another it isn’t. You should be aware of local bankruptcy laws before filing.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. You should make every effort to leave your retirement accounts untouched until your retire. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is important to be aware of this list so you will know what assets are saved. This will ensure that you do not have any surprises once you have filed bankruptcy.
Bankruptcy is tricky and hiring a good lawyer will be a must. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A personal bankruptcy attorney can help and guide you along through the bankruptcy process.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
If you are making more money than you owe, bankruptcy should not even be an option. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.
Chapter 7
Before you decide to file for Chapter 7 bankruptcy, you should consider what your bankruptcy might have on others, as your family and friends may be affected. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. However, if you had a co-debtor, they will be required to pay the debt.
If you have filed for Chapter 13 bankruptcy, you will still be allowed to apply for and receive a mortgage or car loan. But, it could be harder. Your trustee must approve any new loans. You will need to come up with a budget and show that this new loan payment schedule is doable. Be ready to justify the purchase that you need the loan for, too.
File at exactly the right time to maximize the effect of your bankruptcy. When filing for personal bankruptcy, it is very important that you act at the correct time. Sometimes it is the best option to file quickly, whereas in other situations filing should be put off until the worst has already passed. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
As you can see, you do not have to resort to bankruptcy. You can use what you know to find the road to return from the brink of bankruptcy. Apply the guidance you just received and see what it can do to improve your financial circumstances and bolster your credit record.
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