While filing for bankruptcy may be a hard decision to make, for some it is a necessity. When going through this process it is best you have a lot of knowledge on what is about to take place. Continue to read this article to learn what has helped others who have filed for bankruptcy.
It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. You have other choices, including consumer credit counseling. Be sure to consider all options before filing for personal bankruptcy, as this will take a large toll on your credit score for the next ten years.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Do some research about these options so you can choose the best one. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Before you file for personal bankruptcy, weigh all of your options. Before filing, talk with an attorney who can help you weigh all of your options. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
Don’t file for bankruptcy without knowing your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. Only a small number of debts are not dischargeable, including student loans and child support obligations. If you are speaking to debt collectors about another type of debt and they tell you it cannot be discharged, check your local regulations. You can report the collectors to your state attorney general if they are lying about this.
Don’t wait until it is too late to file for bankruptcy. It is a big mistake to avoid financial problems, thinking they may go away on their own. It is too easy for debt to mount up and become uncontrollable, which could lead to loss of assets or wages. Once you are aware that your financial situation is not manageable any more, your best bet is to speak with a bankruptcy attorney and find out what he or she recommends.
Know the bankruptcy code backwards and forwards before filing. You need to know certain things, like the fact that it’s illegal to transfer any asserts 12 months before filing your claim. It’s also prohibted to run up debt on credit cards just prior to filing.
If you plan to pay debts off before you file for bankruptcy, be careful. There are bankruptcy laws which forbid repayment of some creditors within three months before filing. In the case of family members, this period of time may extend to a full year. Read up on the rules before you make any decisions about your finances.
If you think you have to file a petition for bankruptcy, get a lawyer who specializes in bankruptcy. The complexities of the process of filing, court proceedings and other issues can best be handled by a competent lawyer. Your lawyer also knows how to properly file the paperwork and can answer any questions that you have.
Just because you got alternative employment just prior to filing should not make a difference to your plans. Bankruptcy might still be in your best interest. When you decide to file for bankruptcy makes a huge difference. If your filing is processed before you actually start making your higher salary, your repayment terms won’t reflect that new income source.
Most attorneys make a free service available to deal with creditors who are constantly calling about your debts. Give your creditors your lawyer’s number and they will get a confirmation that you do not owe them anything. Once this is done, they will cease and desist calling you.
Know that you are able to re-file if you’ve made a mistake in filing for bankruptcy. Be aware, though, that in most situations you will only possess the assistance of an automatic stay for thirty days after filing if your case has already been dismissed once. If you need more than the allotted 30 days you should ask the judge for an extension if you have good cause.
Nobody wants to file for bankruptcy, but in some cases the situation becomes necessary. Having studied the information in this article, hopefully you are better prepared to deal with the bankruptcy process. If you can understand the path that others have followed, your journey will be more successful.
This is a limited-time offer. We are not able to guarantee availability if you wait!
