Many people fear the thought of bankruptcy. Growing debt loads combined with continuous family obligations can cause an incredible financial strain. If these are issues that plague you, you will find this article full of helpful advice.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If you are in this position, you need to be familiar with the laws in your area. Each state has their own bankruptcy laws. For instance, in some states you can keep your home and car, while other states prohibit this. Become acquainted with local bankruptcy laws before filing.
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The US Department of Justice, NACBA, and American Bankruptcy Institute websites are all great places to go for up-to-date information. The more knowledge you have, the more you are able to make right decisions and find a new future.
It is important to remind your lawyer of any details that may be important to your case. Don’t assume that he’ll remember something from a month ago; tell him again. Speak up if something is troubling you, as this is your future we are talking about here.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Before declaring bankruptcy, be sure you’ve weighed other options. For instance, a consumer credit counseling program may be a better bet if your debts are relatively small. You may have luck negotiating lower payments by dealing directly with creditors, but be sure to document any get and new agreement terms in writing from each creditor.
Don’t think that loading up your credit card with tax debt and then filing for bankruptcy is an answer either. In most states, this debt won’t be discharged, and you could end up owing the IRS a whole lot more. The rule here is that if you can get the tax discharged then you can get the debt discharged. It is pointless to use credit cards if they can be discharged.
Look into all of your options before you choose to file for bankruptcy. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. Look into loan modification plans if you need to deal with an imminent foreclosure. Sometimes your lender will work with you to help pay off your debt by giving you a lower interest rate, forgiving late fees, or extending the time period of your loan. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
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. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. Here are the qualifications in regards to your vehicle: you must have bought it nine hundred and ten days or more before filing for personal bankruptcy; your loan must carry high interest; your work history must be steady and solid.
Do not use the word “shame”, if you go bankrupt. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. These sorts of feelings are not helpful to you. Indeed, they may cause you mental anguish. Try to keep a positive attitude during this tough time and you will be able to better cope with bankruptcy.
Make sure you are always providing honest documentation whenever you have to file for personal bankruptcy. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Going through bankruptcy is tough and can be mentally and emotionally draining. Engage a competent lawyer in order to avoid excess stress and keep everything on track. Get recommendations and look into other qualifications rather than just choosing based on cost alone. Your attorney does not need to cost a lot, but they do need to have a lot of experience. Get referrals from people you know who have been in your situation, check with the better business bureau and use free consultations to interview several people. Attending a court hearing will give you experience as to how lawyers handle these cases.
Be careful how you pay off any debts prior to filing for personal bankruptcy. You might be legally unable to file for bankruptcy if you were still paying your creditors ninety days ago, or your family members a year ago. Find out more about legal requirements before making your decision.
Filing a claim doesn’t always result in losing possessions. Your personal items will stay with you. Some included items are: electronics, household furnishings, clothing and even jewelry. This will all depend on the type of bankruptcy you choose, your finances, and your state’s laws, but you could hold onto your large assets like the car and the family home.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. The Bankruptcy Code has lists of various asset types that are exempt during the process. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Consolidate a list of what you owe. Your debts in particular will serve as the basis of your claim. Every single debt you have will need to be listed here. Go over all your financial records and do not forget anything. Don’t be careless about this step, as discharge depends on submitting the correct numbers to the court.
Carefully pick the lawyer you will use when filing for bankruptcy. Many newer lawyers enjoy this kind of law. Always confirm that your lawyer is highly experienced and licensed to handle a bankruptcy. A basic Internet search can turn up client ratings and relevant background information.
No matter what’s going on, make sure you tell the truth about your situation. It can be catastrophic to make up things about your assets and debts. This is not legal. You could go to prison for lying on a bankruptcy petition.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. The person you choose to file with needs to know both the good and bad aspects of your finances. Divulge all of your information so that you and your lawyer can devise the best strategy for dealing with your situation.
If someone is scared of filing for personal bankruptcy, their feelings are completely legitimate. The thought of filing may have scared you away in the past, but with this article in hand, you should fear no longer. Apply this advice to improve your situation for yourself and any loves ones.