Before they find themselves in a position of needing to file for personal bankruptcy, many people believe the only losers would do so. If you lose your job, your spouse or find yourself overwhelmed with bills, filing for bankruptcy might be the only option left. Read this article to learn more about bankruptcy and find out if filing is the best option for you.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If you’re in this situation, learn about the laws where you live. The laws governing bankruptcy vary from state to state. You may find your home is safeguarded in one state, while in another it isn’t. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. Debt advisors are one of the many other avenues you can consider. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Exhaust every other option before making the decision to file for personal bankruptcy. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
Don’t be afraid to remind your attorney of certain details in your case. It is wrong to assume that your lawyer will remember every word you ever utter! This is your bankruptcy and your future, so never be nervous about speaking your mind.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. Some companies just want to take advantage of you, so it is important that you have help from someone you trust.
If you can, get a word-of-mouth referral for a lawyer. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Don’t hire an attorney who fails to address all your concerns and questions. It is not necessary to decide immediately after your consultation. This will give you extra time to interview several attorneys.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Protect your house. Bankruptcy doesn’t always mean you’ll lose your home. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Learn all the latest laws before you file bankruptcy. The laws change a lot, so you need to look them up and have a better idea of how to properly approach the bankruptcy process. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
Be certain that bankruptcy truly is your best option. You may well be able to regain control over your debts by consolidating them. It is not a quick and easy process to file for bankruptcy. Credit will be much harder for you to come by after you file for bankruptcy. This is why you must ensure that bankruptcy is the only option left for you.
If you make more money than what you owe, filing for bankruptcy is not a good option. While filing may seem simple and a way to get out of paying your debts, it does tremendous amounts of long-term harm to your credit report.
Debt Collectors
Safeguard your home. Bankruptcy filings do not necessarily mean that you have to lose your house. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Make sure you understand your rights as you file for bankruptcy. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. There are very few debts, such as child support or student loan debt, that can’t be bankrupted. If any debt collectors tell you that their debts can’t be bankrupted, make a report with your state attorney general.
Facing bankruptcy is a negative situation that can bring on stress. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Don’t hire based solely on cost. Think about quality rather than cost when hiring an attorney. Ask people who have used a bankruptcy lawyer for referrals, look them up at your local Better Business Bureau, then schedule free consultations in order to interview them. It is even possible to watch a court hearing in order to see how well an attorney handles a case.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. Failing to list these could cause the dismissal or delay of your bankruptcy petition. You might think something is insignificant, but you should add it anyway. This might take the form of odd jobs, extra cars and outstanding personal loans.
Make sure bankruptcy is truely your only option before filing. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. Look into loan modification plans if you need to deal with an imminent foreclosure. A good lender will be able to assist you in a variety of ways, from getting rid of your late charges to reducing interest rates. You may even be able to get a loan extension, giving you the extra time you need to pay your debt off. Remember that creditors desire to get paid and usually debt repayments are often preferable when dealing with bankrupt debtors.
After considering all of your options, you may find that bankruptcy is your only choice. If life has brought you here, there is no reason to stress yourself out. You can find valuable information by reading this article.