Bankruptcy is a decision that should be considered carefully before undertaking. Doing your research, partially by reading articles like this one, is an important first step in filing for bankruptcy. Doing as much research as possible is important.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. You can learn a lot on the U.S. D.O.J., the A.B.I and the N.A.C.B.A. are all useful organizations willing to provide educational material. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Before filing for personal bankruptcy, make sure you are doing the right thing. There are plenty of other options open to you, like consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Do not make any final decisions until every question you have has been answered. Take your time choosing the right attorney to assist in your bankruptcy. You have lots of time for consulting with other lawyers.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Choose to file only if your lawyer has convinced you that this is the best decision. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. After your consultations, do some additional research on each attorney you consider qualified for the job.
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 bankruptcy attorney can advise you on how proceed properly.
Chapter 13 Bankruptcy
Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. This includes creditors and your relationship with them will become no longer existent. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. Take the time to learn more about these different options so you can make the best decision possible.
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. With a consistent income source and less than $250k in debt, try filing for Chapter 13. You can secure your home under Chapter 13 and pay your debts with a payment plan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. However, if you were to miss a payment, the court would dismiss your case right away.
As the preceding article suggests, bankruptcy is not something that magically happens. There is a long list of items you need to do, and make sure they are done correctly. When you implement the suggestions in this article, you can feel confident that you have covered all the bases with regard to bankruptcy filing.