Bankruptcy is a complex process. Bankruptcies come in different types; what you choose is subject to your financial situation and the kind of debts that you have. You should learn all you can about bankruptcy before filing. Here are a few wise tips to help you in your decision.
Don’t be afraid to remind your attorney of certain details in your case. Don’t just assume that the attorney will remember it automatically. It’s your financial future that is in his hands; don’t hesitate to speak up.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. It’s crucial to read that list before filing to see which of your prized possessions can be seized. You wouldn’t want to unexpectedly lose any possessions you treasure.
You might experience trouble with getting unsecured credit after filing for bankruptcy. If that’s the case, it is beneficial to apply for one or even two secured cards. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. After a certain time, you will then be able to acquire credit cards that are unsecured.
Ask those you know if they have an attorney to recommend, instead of finding one on the Internet or in the phone book. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. Wherever you file, that court has to be made aware of all details regarding your finances, positive and negative. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. It is important to meet with the actual lawyer, because paralegals or assistants cannot give you legal advice. Look for a lawyer who you can relate to.
Chapter 7
Be certain that you can differentiate between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is the best option to erase your debts for good. All happenings with creditors will disappear. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. You need to be aware of the pros and cons of each type of bankruptcy so you can correctly select the best choice for your situation.
Consider filing using chapter 13 bankruptcy. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Consider that if you even miss one payment, your case will not be considered by the court.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Do some research about these options so you can choose the best one. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. A lot of debtors usually get stressed when they file. Depression can ensue from the stress if action isn’t taken. You are getting a fresh start, and things will get better.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. Many times, payments can be lowered through Chapter 7 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.
Make sure you act at an appropriate time. When it comes to filing for bankruptcy, your timing is important. For some people, filing right away is best, however for others, waiting a while is best. Speak with bankruptcy attorneys for a time frame for filing with your situation.
You could see about filing for Chapter 13 personal bankruptcy. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. Expect to make payments for up to 5 years before your unsecured debts are discharged. However, if you miss even one payment, the court will dismiss your entire case.
Don’t take too long when trying to decide whether you want to file bankruptcy. As with anything in life, putting off important things such as debt repayment can snowball quickly out of control. A qualified bankruptcy lawyer can give you advice about filing for bankruptcy and help you weigh other options.
If you’re continuously making delinquent payments and are constantly missing payments, filing for bankruptcy might just be a kinder, gentler solution for you. While bankruptcy will haunt your credit history for up to ten years, your damaged credit will start healing right away. One of the benefits of bankruptcy is a relatively fresh start.
Take the time to make a complete list of your debts. You need to gather every debt you know you have, because this list is the starting point for a bankruptcy filing. Go through your papers and records so you are certain about actual amounts. Avoid rushing through the bankruptcy paperwork; if you want each debt discharged, you need to make sure the numbers are right.
Chose the proper moment to make your move. Filing at the right time can make things go much more smoothly. In some situations it is best to file as soon as possible, but in other situations it is best to wait until after you’ve gotten through the worst of it. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
Be sure to take care in choosing a lawyer to handle your personal bankruptcy case. You do not want to hire someone who is new to the field of bankruptcy. Ensure that the attorney you choose is experienced and has the proper license. Go online and look up the attorney’s record and read up on any reviews, as well as any pertinent background information.
This article has hopefully made it clear that declaring bankruptcy is a big decision that should be considered at length. Should you determine that it is a wise move considering your personal circumstances, you need to consult with a lawyer who has handled many other bankruptcy cases.