The thought of bankruptcy has brought feelings of anxiety and fear into the lives of many people. Similarly, mounting debt and the inability to sufficiently support oneself and family is another very real fear. If you’re afraid of this scenario (or worse if you are living at), it is our sincere hope that the advice given here will be of help to you.
Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States DOJ, the NACBA, and the ABI all have useful information. Knowing as much as possible about bankruptcy gives you an advantage and will help you make the best decision possible.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. The lawyer representing you when you file needs to have full knowledge of your financial situation. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. It is a good idea to consult several attorney before deciding on one. You should make a final decision only once all of the questions or concerns are sufficiently attended to. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. You can take as much time as you need to meet with different lawyers.
Take the time to find a simpler solution to your financial issues, before filing for bankruptcy. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Do some research about these options so you can choose the best one. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Debt Repayment
Filing for bankruptcy should not be done on a whim. Speak with an attorney who specializes in bankruptcy to find out if alternatives, such as a debt repayment plan or a reduction of your interest rates, might be better for you. Various loan plans out there can be a lifesaver if you’re facing a foreclosure. 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. 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.
Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. Debts which you shared with another will not be your responsibility any longer if you file for personal bankruptcy under Chapter 7. But, creditors will ask for the money from your co-debtor.
If you decide to file for bankruptcy, it’s important that you’re educated about your rights. Do not rely on your debtors information about whether or not certain loans can be included in your bankruptcy. There are not many debts that can not be bankrupted, student loans and child support for example. 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.
Make sure you are completely aware of bankruptcy laws before you consider filing. Did you know that in some areas, you cannot transfer assets from yourself to another person in the year previous to filing occurring? Also, you can’t go and max out your credit card just because you are about to file for bankruptcy.
Do not forget to list each and every debt you have. Forgetting anything can cause a delay, or even a dismissal. No matter how insignificant a sum seems, include it in the documentation. This includes any jobs you have on the side, any vehicles you have and any outstanding loans.
Be cautious if you are planning to pay off any of your debts before you file for bankruptcy. There are many laws when it comes to bankruptcy, including prohibition of paying some creditors 90 days before you file, as well as family for a whole year. Do your research rather than making financial decisions blindly.
It may be counterintuitive, but in some cases, pulling the trigger and filing for bankruptcy may have better credit consequences than continuing a pattern of credit delinquencies. Although your credit will take a big hit, you can begin to repair it immediately after filing bankruptcy. The best aspect of bankruptcy is the fact you can have a new start.
Once a few months have passed after your bankruptcy, contact the three major credit reporting agencies and request copies of your report. Check to make sure that your report accurately shows that your debts have been discharged and that closed accounts are also updated. Question and clear up problems and discrepancies immediately, so that your credit record can start improving quickly.
If you headed toward for bankruptcy you have little to lose, so honesty is the best policy. Lying concerning your financial situation will not help you out of this situation. It’s also illegal. Lying about your assets and debts could get you a lengthy prison stay.
Chapter 13
If after filing for Chapter 7 you aren’t qualified for Homestead Exemption, there is a possibility you can file Chapter 13. In some cases, it may be best to convert your entire Chapter 7 case into a Chapter 13 case, so you should talk to your attorney about your next step.
Filing for bankruptcy can be a very scary and intimidating experience. Even though you feared bankruptcy before, this article can rid you of that fear. Apply what you’ve learned here, and get a fresh start for you and your family.
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