The circumstances that culminate in a bankruptcy filing are likely unpleasant, though they do not need to define the rest of your life. The main point is to start over financially. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.
Filing for bankruptcy is something many people are forced to do when there debts become too much of a burden, and they can no longer afford to pay them. If this sounds familiar, you should read up on the bankruptcy laws in your state. Different states use different laws when it comes to bankruptcy. You may find your home is safeguarded in one state, while in another it isn’t. Do you research about legal ins and outs in your state before you begin the bankruptcy process.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Personal Bankruptcy
It is important that you increase your knowledge on personal bankruptcy by reviewing websites that provide reliable information. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Avoid ever touching retirement funds until you have no other choice. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Ask for a free consultation with your bankruptcy attorney and ask questions about experience and education. Seek free consultations from a handful of lawyers, before deciding which one to hire. Make a decision when all your concerns and questions have been addressed well by one lawyer in particular. You do not need to make a decision immediately after the consult. You could even go to different lawyers for advice.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
You should not have to pay for a consultation with a bankruptcy attorney. Make sure you ask lots of questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. After the consultation, you are not immediately required to come up with a decision. So you have sufficient time to speak with a number of lawyers.
When a bankruptcy is imminent, retain a lawyer immediately. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
60 Month Period
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7, for example, will wipe away every one of your outstanding debts. All happenings with creditors will disappear. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It’s important to know what differences come with every type of bankruptcy. This will let you find out what’s best for you.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Looking for an attorney will help you find a lawyer you feel good around.
Be sure your home is well protected. Losing your home is thought of as common in bankruptcy cases, but it is by no means inevitable. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. Check to see if you pass the requirements necessary to file for a homestead exemption.
Consider filing using chapter 13 bankruptcy. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
Make sure that you act at the appropriate time. Timing is critical, particularly when it comes to filing for bankruptcy. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Personal Bankruptcy
After you have finished with the initial process of filing, you can relax and take a breather. It’s easy to be stressed during this time. That stress can cause depression, if you don’t take care to avoid it. Things will be sunnier after you take positive steps to move forward.
Judging from the information contained within the article alone, you can now see that there are ways to get out from under the piling debt. Nonetheless, filing for personal bankruptcy can be a watershed moment. Follow the advice from this article, and use personal bankruptcy to get your fresh start.