The circumstances that culminate in a bankruptcy filing are likely unpleasant, though they do not need to define the rest of your life. Bankruptcy exists in order to provide you with a fresh start. Keep reading to handle the bankruptcy process in a way that is a rebirth and not a financial Armageddon.
When it appears likely that you will file a petition, do not start spending your last remaining funds on debt repayment. Leave your retirement accounts untouched unless there is absolutely no other alternative. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code has lists of various asset types that are exempt during the process. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
Check the accuracy of all information before it is filed. Don’t assume that he will remember something you told him weeks ago. Do not hesitate to speak up; this is your hearing and your future is on the line.
Hire a lawyer if you plan on filing for bankruptcy. Filing for bankruptcy is a complicated procedure, and you may not be aware of all the ins and outs. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Being honest is both the right thing to do and, moreover, it is required by law.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Take the time to find out about each one online, and look at the advantages and disadvantages of each. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
When your income surpasses your bills, you should not be filing bankruptcy. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Look into all of your options before you choose to file for bankruptcy. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. If foreclosure looms, think about getting your loan plan modified. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
It is important to understand your rights when filing bankruptcy. You might even be able to get back secured property that has been repossessed in the 90 days before filing. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Talk with an attorney who can guide you through the process of filing a petition.
Once your initial filing is complete, it is time to take some time to relax a little. Filing for personal bankruptcy can be very stressful for the debtor. Don’t let the process control you in a negative way. You will get through it, and you should make an effort to remember that. Things will be sunnier after you take positive steps to move forward.
You should never feel shame for needing to file for bankruptcy. You may need to get credit counseling or simply learn how to balance your budget. Although dealing with a bankruptcy is stressful, try to focus on the positive. Keeping an optimistic view as you deal with your financial woes is the most productive way of dealing with a bankruptcy.
Before you even consider filing for bankruptcy, familiarize yourself with the laws surrounding this process. Did you know that in some areas, you cannot transfer assets from yourself to another person in the year previous to filing occurring? It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. The majority of lawyers offer their first consult at no cost, so ensure you meet with several to find one that you like. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. After the consultation, you are not immediately required to come up with a decision. So you have sufficient time to speak with a number of lawyers.
As stated before, unhappy events may have led you to declare bankruptcy. But, that does not mean that your post-bankruptcy life cannot be fantastic. Using the advice you have found here, bankruptcy can be the beginning of a new, exciting chapter in your life!