Just the thought of bankruptcy creeping up on you, can make you fearful to say the least. Between rising debt and pressure from the family, it can leave you sleepless at night. If these circumstances sound familiar, you stand to benefit from the tips that follow.
Consider all options before deciding to file for personal bankruptcy. There are other options available, such as credit counseling for consumers. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If you’re in this situation, learn about the laws where you live. Each state has its own laws regarding personal bankruptcy. Your house is safe in certain states; however, in other states, it isn’t. Familiarize yourself with the bankruptcy laws of your state prior to filing.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Be sure to bring anything up repeatedly if you are unsure if your lawyer is focusing on it. Never assume that they can remember all details without reminders. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If this happens to you, think about applying for a couple of secured credit cards. You can exhibit your desire to rebuild your credit this way. In time, it may be possible for you to obtain unsecured cards.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. Often, you can negotiate a lower payment through bankruptcy. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
If you are filing for bankruptcy, it is imperative that you have a good understanding of your rights. You might hear from your creditors that your debts cannot be canceled through bankruptcy. There are not many debts that can not be bankrupted, student loans and child support for example. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. Some creditors will work with you to help you pay off your debt with lower interest rates, lower late fees, or an extended loan period.
It is important to file bankruptcy before its too late. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake. Debts can get out of control fast. If you’re not taking care of these debts, you may be getting into trouble like wage garnishment. As soon as you realize your debts far outweigh your income, call a bankruptcy lawyer to talk about what your choices are.
People who are afraid of bankruptcy have good cause to be; the process can be scary and stressful. You may have been scared before, but this article has probably allayed your fears. The advice in this article will make the idea of filing for bankruptcy a little easier for both you and your family.