If your debt has driven you to the brink of bankruptcy and you don’t know what to do, stop worrying. The Internet, and this article in particular, is full of great advice for navigating the complexities of bankruptcy. Read the information provided here to see if bankruptcy can be avoided.
Individuals often seek to file for personal bankruptcy protection if their debts exceed their ability to repay them. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Each state has its own laws regarding personal bankruptcy. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. 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.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
There is hope! You might even be able to get back secured property that has been repossessed in the 90 days before filing. You may be able to get your property back if fewer than 90 days have passed between the repossession and are filing for bankruptcy. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Do not make any final decisions until every question you have has been answered. After the consultation, you are not immediately required to come up with a decision. You could even go to different lawyers for advice.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Retirement accounts should never be accessed unless all other options have been exhausted. Although you may need to tap into your savings, you should not use up all of it right now and jeopardize the financial security of your future.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. For example, consumer credit counseling programs can help if your debt isn’t too large. You could even negotiate for lower payments. However, you should ensure that you always obtain a written record of all the changes to your debt that you’ve agreed to.
Chapter 13
Learn the differences between Chapter 7 and Chapter 13 bankruptcies. Chapter 7, for example, will wipe away every one of your outstanding debts. Any ties you have concerning creditors will definitely be dissolved. If however you enter Chapter 13, you will go into a five year repayment program prior to your debts dissolving entirely. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Research what assets are exempt from seizure before you decide to declare bankruptcy. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. 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.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Never settle for speaking with a paralegal or an assistant. They are not trained, nor allowed, to pass on legal advice. Look for a lawyer who you can relate to.
Always protect your house. Bankruptcy doesn’t always mean you’ll lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
While going through this process, spend more time with friends and family. The whole process of filing for bankruptcy is hard. It is long, stressful and makes people feel like losers. Many people don’t feel like socializing during the ordeal. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. It’s crucial to spend time with loved ones despite your present financial situation.
You should be able to meet with a specialized lawyer for free to ask your questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. It is not necessary to decide immediately after your consultation. So, this gives you plenty of time to consult with several attorneys.
If your vehicle is in question, perhaps your attorney can assist in lowering your payments. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. In order for this to succeed, you must have bought your car in excess of 910 days before filing, have a higher interest loan for it as well as a consistent work history.
The right planning can help you get what you need. It’s best to take as much time as possible. Just be sure that you’re making the right decisions in preventing from filing bankruptcy. Now come up with a plan and put yourself in a good position going forward.