You do not have to keep worrying if your debts are making you think about filing for bankruptcy. There is a lot of helpful advice on the Internet that will show you how to avoid this terrible bankruptcy situation. Peruse this article and pick up some tips on how to prevent a financial catastrophe that causes you to go bankrupt.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If you’re in this situation, learn about the laws where you live. Different states have different laws regarding bankruptcy. Your home is safe in some states, but in others it’s not. You should be aware of local bankruptcy laws before filing.
Always remind your lawyer of specifics that are important to your case. You should not take for granted that your lawyer will remember every important detail that you have have told him earlier without a reminder. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Keeping secrets or trying to outsmart everyone is not a wise move.
Find a specialized lawyer if you are thinking about filing for bankruptcy. You may not know everything you need to know in order to have a successful outcome of your case. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Chapter 7
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 involves the elimination of all of your debt. Your ties with all creditors will get dissolved. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. Take the time to learn more about these different options so you can make the best decision possible.
Meet with a few attorneys who offer free consultations before hiring one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Your most important concern is to protect your home. You don’t have to lose your home just because you are filing for bankruptcy. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. You are still going to want to check into homestead exemption either way just in case.
Chapter 13
Consider filing for Chapter 13 bankruptcy. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. This lasts for three to five years and after this, your unsecured debt will be discharged. However, if you are unable to properly commit to the plan you agree to, your case can be dismissed.
If you make more money than you need to pay your bills, you should not file for personal bankruptcy. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. After filing, many people find themselves stressing over their situation and how to fix it. The stress of dealing with bankruptcy could cause you to fall into a depression, unless you take steps to take care of yourself. You are getting a fresh start, and things will get better.
Prior to filing for bankruptcy, purge from your vocabulary the word “shame”. Many people feel guilty, embarrassed and unworthy when dealing with bankruptcy. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Before you file, make sure you understand the laws as much as possible. For instance, it’s prohibited for an individual to transfer assets to someone else a year before filing for bankruptcy. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
Proper planning can put you in the right place. If you can buy yourself, time then do it; the more the better. If you are taking the steps necessary to avoid bankruptcy, you are on the right track. The time to plan you future is now so get on with it.
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