If you have been put into the position of needing to file for bankruptcy, you are likely not to be very happy about it, but it does not lead to your life ending. The benefit of filing for bankruptcy is that you have a new beginning. Keep reading to see how bankruptcy can actually give you a new lease on life, rather than function as a permanent financial albatross.
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One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Telling the truth will allow you reach a solution that is feasible, given your current situation.
Be certain that bankruptcy truly is your best option. It might be possible to consolidate some of your debt instead. Filing a claim can take a long time and cause much stress. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. Therefore, you need to be sure that you really have no other option than to file for bankruptcy.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
While going through this process, spend more time with friends and family. The bankruptcy process can be brutal. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. Most people adopt a very negative attitude toward bankruptcy. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
If you are making more money than you owe, bankruptcy should not even be an option. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
Bankruptcy Process
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. Many people feel a lot of stress while they work through the bankruptcy process. This stress could actually cause depression, if you don’t combat it. Your life will see improvement after you get past the bankruptcy.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. However, creditors will want to hold your co-signer responsible completely.
When you do file for bankruptcy, make sure you know your rights. Some debt collectors like to say that you cannot file for bankruptcy on these debts. Only a small number of debts are not dischargeable, including student loans and child support obligations. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
Remember to only file for bankruptcy if you need to. Sometimes consolidating your existing debts can make them more manageable. There is not easy process associated with personal bankruptcy. It will certainly affect the credit rating that you have in the future. Because of this, filing for bankruptcy should only be used as a last resort.
In conclusion, most circumstance that lead to bankruptcy are not positive. Use what you have learned and take responsibility for your financial health – turn your life around. As a matter of fact, if you put the ideas in this article into play, you can let bankruptcy proceedings a pivotal moment in your existence towards a brighter future.