Bankruptcy is something no one wants to experience. However, some situations in life are simply beyond our control. Once debt reaches a certain level, bankruptcy may be the only option. It is unfortunate to find yourself in this position, but this article is here to help get you started in the right direction.
When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Retirement funds should be avoided at all costs. Using your savings is necessary, but decimating it and leaving yourself dangling with no future financial security is not a good idea.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Unsecured Credit
After a bankruptcy, you may still see problems getting any kind of unsecured credit. If you find yourself in this situation, you may want to think about getting a secured card or two. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. In time, you might be granted unsecured credit again.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. The Bankruptcy Code provides a listing of the various asset types that are not included in the bankruptcy process. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. The person you choose to file with needs to know both the good and bad aspects of your finances. Do not leave anything out and come up with smart plan to manage the situation you are dealing with.
Before you file, make sure you understand current bankruptcy laws. Laws are subject to change, and it’s important that you’re educating yourself about current code only. To learn about these changes, try contacting your state’s legislation office or checking their website.
Chapter 13
Do some research to find out more about Chapter 13 and Chapter 7. Chapter 7 bankruptcy completely wipes out your debt. Your former ties with creditors will cease to exist. A Chapter 13 filing involves a repayment plan, though. Typically, you will make a partial payment against your debts over the next 60 months before the balance of the debts is lifted. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Meet with a few attorneys who offer free consultations before hiring one. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Comparing different lawyers makes it possible to find one with whom you work well.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. Many debtors stress-out during the time of filing. It is essential to cope with this stress well, to prevent becoming depressed. Life is going to get better once you get through this.
Consider every option prior to filing for bankruptcy. One option to consider is credit counseling. A number of non-profit companies can assist you. They will make arrangements with your creditors so you will have lower payments as well as lower interest rates. You pay the organization, and they pay creditors for you.
When thinking about filing for bankruptcy, it is best not to waste precious time. It can be difficult to ask for help, but as you wait, you accrue more debt. Speaking with someone knowledgeable as soon as you can helps get you started on the bankruptcy process before your situation becomes any worse.
Just because you got alternative employment just prior to filing should not make a difference to your plans. It might still be wisest to file for bankruptcy. The time frame of your filing may be critical. If begin to file before getting your money, your income will not be considered when repayment options are discussed.
Divorce can unexpectedly leave people in financial ruins. Many people divorce, and then need to file bankruptcy because they could not see what troubles laid waiting for them. If it is at all possible to work things out with your spouse, you will both be better off in the event of bankruptcy.
Once you have met with an attorney, you may be given a telephone number for your creditors to confirm you are filing bankruptcy. All you have to do is provide the number. Your creditor can then call and confirm that this debt is included in your bankruptcy filing. They will stop calling you at this point, and you will be able to answer your phone without fear.
Once you determine that claiming personal bankruptcy is something that you must do, you will need all the advice that you can get. The more knowledge you gain, the simpler the process becomes. This article has provided much of that information, so that you can approach your finances in a less stressed state of mind.
This is a limited-time offer. We are not able to guarantee availability if you wait!
