The circumstances that culminate in a bankruptcy filing are likely unpleasant, though they do not need to define the rest of your life. Maybe what you need is a fresh start. You can find this by filing a bankruptcy claim. Read on for how to make the bankruptcy process be a rebirth instead of financial Armageddon.
Make sure that you understand everything you can about personal bankruptcy by visiting websites that offer information. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Make certain that you comprehend everything regarding personal bankruptcy by studying online. The United States DOJ, the NACBA, and the ABI all have useful information. Knowing is half the battle, after all, and these websites are the first step in learning what you need to know to make your bankruptcy smooth and stress-free.
Ask yourself if filing for bankruptcy is truly your best option. You have better options. For example, you could try credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
Prior to filing your bankruptcy petition, go over the list of assets that cannot be seized by creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. It is important to know what types of possessions may be taken away before they actually are seized.
You are going to get found out and get in trouble if you don’t disclose all your assets, so be totally honest from the beginning. It is important that you are completely transparent, showing everything financial that needs to be known. Put everything out on the table and craft a wise plan for handling the situation the best you can.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
Before you file, make sure you understand current bankruptcy laws. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. Check the website of your state’s legislation or get in contact with your local office to learn more about these important changes.
Make certain that you comprehend the differences between Chapters 7 and 13. If Chapter 7 is what you file, your debts will get eliminated entirely. All of your financial ties to the people you owe money to will disappear. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. You must know about the different bankruptcy types, and how each can affect you.
Do not forget to be around those you love. Bankruptcy proceedings can be extremely harsh. It is long, hard and sometimes leaves people feeling guilty or ashamed. A lot of people hide away until the entire proceedings have been played out. Do not isolate yourself or you will put yourself at risk for depression. So, it is critical that you spend what quality hours you can with loved ones, regardless of your financial circumstances.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t just assume they already know and that they have these important details committed to memory or written down. Be as open as you can be to make sure your bankruptcy goes as well as possible.
It is important to look at your financial situation from all possible angles before you decide to file for bankruptcy. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. When all is said and done, creditors want their money and find repayment plans preferable to not getting paid at all.
If you meet certain requirements, you may be able to get a lower monthly payment on your financed vehicle. A lot of the time, your payments may be lowered due to Chapter 7 bankruptcy. It is necessary for you to have bought your car prior to the 910 days preceding your filing, your loan must carry a high rate of interest and you must be employed in order to get such a modification, however.
As mentioned earlier, the events that drive anyone to declaring financial bankruptcy are not a happy story. But, just because you ended up in this dark place does not mean that the sun cannot shine once more. Follow the advice from this article, and use personal bankruptcy to get your fresh start.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Whoever provides your legal consultation must be privy to all of your financial information. Keeping secrets or trying to outsmart everyone is not a wise move.