Lots of people look down upon bankruptcy, but when they are forced to claim it, they sing a different tune. Sometimes bankruptcy becomes the only viable financial option thanks to uncontrollable circumstances, like a divorce or a layoff. If you are in this situation, this article will help you learn more about bankruptcy.
Always be honest with the information you give about your finances. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Do not hesitate to remind your lawyer of any details regarding your case. Don’t assume that he will remember something you told him weeks ago. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Don’t hide assets or liabilities when filing for bankruptcy. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Telling the truth will allow you reach a solution that is feasible, given your current situation.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Only choose a lawyer if you feel like your questions were answered. After your consultation, take your time to make your decision. This will give you extra time to interview several attorneys.
Before you file, make sure you understand current bankruptcy laws. If you want to file for bankruptcy successfully, it’s important to review the latest applicable laws. They tend to change frequently. To learn about any changes, search the Internet or contact your state’s legislative office.
Your most important concern is to protect your home. Filing for bankruptcy will not always result in losing your home. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Don’t file for bankruptcy unless it’s absolutely necessary. Sometimes consolidating your existing debts can make them more manageable. Bankruptcy is a long process that can be stressful. It will affect your access to credit in the future. Thus, you must make certain that bankruptcy really is the only viable solution to your problems.
Chapter 13
Consider Chapter 13 bankruptcy for your filing. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. The window for Chapter 13 repayments is typically 3-5 years. At the end of this time, any unsecured debt is discharged. However, if you miss even one payment, the court will dismiss your entire case.
Be around family as much as possible. Bankruptcy proceedings can be extremely harsh. It is long, stressful and makes people feel like losers. Many people tend to hide until their process is completed. This is not a good idea because staying alone could cause serious problems with depression. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. It is much harder. You need to contact your trustee so you can get approved for a new loan. You will need to make a budget and prove that you will be able to afford your new loan payments. You’ll also need a valid reason for making the purchase.
Create a list of all of your finances before filing for bankruptcy. Forgetting anything can cause a delay, or even a dismissal. Even if it’s a small sum, make sure it is listed. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
Don’t take out big cash advances from any of your credit cards prior to filing for bankruptcy, taking advantage of the fact that those debts will later be erased. This fraudulent practice is a demonstration of bad faith. Debts you incur this way will likely not be discharged in a bankruptcy, and you will still have to repay them.
Before you file bankruptcy, consider how you will pay off your debts. Bankruptcy laws generally don’t cover situations which occurred within a short time frame prior to filing, such as the previous 90 days worth of credit card debt. Find out more about legal requirements before making your decision.
When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. It is difficult to admit that you are in over your head financially, but waiting will just make the problem worse. By speaking with a professional in a timely manner, you can get good advice before the bankruptcy process gets too difficult.
After you’ve exhausted every other option, you might determine that bankruptcy is the only way out of your debt crisis. If something other than financial irresponsibility has caused your financial problems, there is no need to worry. This article will provide valuable information for you.
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