While filing for bankruptcy may be a hard decision to make, for some it is a necessity. The best way to deal with the process is to become educated on the subject. Keep reading for tips and advice from those with personal bankruptcy experience.
Most people end up filing for personal bankruptcy because they owe more than they make. If this is the case for you, you should begin to investigate the legislation in your state. When it comes to bankruptcy, states have varying laws. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. 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.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you don’t heed that advice, you might find yourself getting surprised when your favorite things are repossessed.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
It is important to protect your home when filing bankruptcy. It isn’t inevitable that you will lose your house when you file for bankruptcy. There are mitigating factors, such as lose of value, or multiple mortgages. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Take time to research this online and see the pros and cons for filing each one. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Look at all the alternatives to bankruptcy before filing. There are many other options including debt consolidation and making payment plans with your creditors. Look into loan modification plans if you need to deal with an imminent foreclosure. Your creditors will be willing to work with you to allow you to pay off your debts. They may be able to take late fees off of your account, cut down your interest, or even extend the loan’s repayment period. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. The laws are constantly undergoing changes, so you must stay on top of them if you are going to file for personal bankruptcy correctly. Your state’s website should have the information that you need.
Pick the right time to file. When it comes to filing for personal bankruptcy, timing is everything. Sometimes you may want to wait to file and in other situations you may find it better to do it as soon as you can. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy.
Don’t stress about trying to determine whether bankruptcy is something you must do. It can be hard to ask for help but it’s not recommended for you to get further into debt. By speaking with a professional in a timely manner, you can get good advice before the bankruptcy process gets too difficult.
It is possible that a bankruptcy might actually be smarter over the long term than struggling month to month with consistently late or missing payments. Yes, the bankruptcy will stick around for a whole ten years, but the clean slate you get from filing will help you get back on the right track quickly. In other words, bankruptcy can give you an opportunity to start over if handled correctly.
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. Under Chapter 7 type bankruptcy, all debts are forgiven. Your former ties with creditors will cease to exist. Filing Chapter 13 differs by requiring you to agree to a 60 month plan to repay your debts before they are totally eliminated. Take the time to learn more about these different options so you can make the best decision possible.
Make a list of all your debts. This will be where you start your bankruptcy filing. Be sure you’re including every debt. Be 100% certain that the amounts you are claiming as being owed are true and correct. This process should not be rushed; the numbers should be exact.
No one ever wants to declare bankruptcy, but sometimes, it is just unavoidable. Now that you’ve read over this article, you learned some things that are from others who have experienced this too. Learning from people who traveled down this road before can make your journey less stressful.