Bankruptcy is both a stressor and a relief. There is the need for all your finances to be exposed, and multiple people scouring your financial information. However, when your bankruptcy is over, you can re-establish your finances and no longer need to tolerate bill collectors. Read on for advice on easing the pain of bankruptcy.
Ask yourself if filing for bankruptcy is the right thing to do. Alternatives do exist, including consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Do not be afraid to remind your attorney of important specifics of your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You don’t need to decide what to do right away. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Chapter 13
You should never give up. Filing for bankruptcy may allow you to get back property, such as an auto, jewelry, or electronics, that you may have had repossessed. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Speak with a lawyer that will provide you with guidance for the entire thing.
Consider Chapter 13 bankruptcy, if you chose to file. With a regular income and unsecured debt below $250,000, Chapter 13 is probably best for you. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. The length of the plan is generally up to five years, and when this is over, you will be free of unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. When you file a Chapter 7, your debts will be dissolved. But, bear in mind, the debt now becomes the sole responsibility of your co-debtor.
Rest assured, when you file for Chapter 13 bankruptcy, you still have the ability to take out mortgage and car loans. This is a lot harder. Normally, the trustee assigned to your bankruptcy must approve any new loan. Draw up a budget, demonstrating that you can afford the new loan payment. You also need to be prepared to answer questions about your need for the new item.
If you have a co-debtor, consider the ramifications that filing a Chapter 7 bankruptcy will have. Once you have filed Chapter 7, you, by law, are not responsible for any of your debts that also include your co-debtor. However, the creditors could come after your co-signer and demand full payment for the debt.
Take action when the time is right. Timing can be critical when it comes to personal bankruptcy cases. Sometimes, filing as soon as you can is best, while other times, it is wise to get past the worst problems first. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
Bankruptcy is a hard thing to experience and it could create both emotional and mental stress. Engage a competent lawyer in order to avoid excess stress and keep everything on track. Don’t hire based solely on cost. The most expensive attorneys are not necessarily the best ones. You can get good information about attorneys from friends,the internet and free consultations that most attorneys provide. You could also sneak into court to watch a real live bankruptcy proceeding to see how that attorney handles the situation.
Don’t wait till it’s too late to file for bankruptcy. The judge reviewing your petition will consider your recent behavior, purchases, income and payments when making a decision. It is too easy for debt to mount up and become uncontrollable, which could lead to loss of assets or wages. When you make the connection that your debt level is too high, contact an attorney that specializes in bankruptcy as soon as possible, to see what can be done.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. The bankruptcy process can make many people feel ashamed, guilty and unworthy. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. Try to keep a positive attitude during this tough time and you will be able to better cope with bankruptcy.
Before you even consider filing for bankruptcy, familiarize yourself with the laws surrounding this process. You need to know certain things, like the fact that it’s illegal to transfer any asserts 12 months before filing your claim. In addition, it is unlawful for the filer to increase the amount of debt they are carrying on their credit cards right before they file.
Think about the pros and cons before filing. Regardless of your reasons for filing for personal bankruptcy, remember that it is a process that can be extremely helpful if you are well informed. These tips can make dealing with bankruptcy easier. Utilize these tips and let them guide you towards a stress-free financial future.