People often shudder at the mention of the word bankruptcy. Increasing debt, along with being unable to support a family can be an actual nightmare for some. If you are in a situation that may require a bankruptcy filing, don’t let fear overcome you. Read this article and learn valuable tips and advice to make this scary situation much more manageable.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Each state has its own laws regarding personal bankruptcy. Some states may protect you home, and some may not. Be sure you educate yourself on local laws prior to filing.
It is essential that you are honest and forthright in the documentation you provide for your bankruptcy filings. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. You should never touch your retirement accounts, unless you have absolutely no choice. You may need to use some of your savings; however, you should not use all of your savings. Remember that you must safeguard your future financial security.
Determine which assets won’t be seized before filing for bankruptcy. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you currently have some income and don’t have more than $250k in debt, you can declare bankruptcy. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Don’t be afraid to remind your attorney of certain details in your case. Chances are that you may have forgotten to tell them about certain specifics that may be important to your filing. This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.
Being with the people who you love should be still be a top priority. The process of bankruptcy can seem brutal. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. Lots of people decide they should hide from everyone else until it is all over. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
Avoid filing for bankruptcy if you make more money than your monthly bills. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. There are many other options including debt consolidation and making payment plans with your creditors. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. Some lenders will make concessions rather than losing the money owed to bankruptcy. These concessions include waiving late fees, lowering interest rates, and changing the loan term. Because of the fact that creditors would like to see their money they are likely to offer repayment plans versus not getting paid at all if you file for bankruptcy.
Use a personally recommended bankruptcy attorney instead of one found through the Internet or phone books. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
Before you file for bankruptcy, make sure you understand your rights. Some debtors will try to tell you your debt with them can not be bankrupted. 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.
See to it that you are aware of the laws concerning bankruptcy 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? It’s also prohibted to run up debt on credit cards just prior to filing.
Filing for bankruptcy can be a very scary and intimidating experience. If you understand all of the ins and outs of personal bankruptcy, you need not fear it. By using the tips and information you’ve gathered here, you will be able to face your fear head on and look forward to a brighter financial future.
Check into less drastic solutions prior to declaring bankruptcy. For example, if your debt is small, try a type of consumer counseling program. It is also possible to do your own debt negotiations; however, be sure to get everything in writing.