Do not take bankruptcy lightly, this is a serious thing. It is vital that you know everything that can happen when you file for bankruptcy. Allow the suggestions found within this article to lead you down the right path. A good amount of research will help you choose the right path to take.
Before filing for personal bankruptcy, make sure you are doing the right thing. Look into other options, such as consumer credit counseling. Bankruptcy leaves a permanent mark on your credit history, so before you take such a large step, you want to exhaust all other options so that the future effects on your credit history are as minimal as possible.
Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to 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. It is important to know what types of possessions may be taken away before they actually are seized.
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. Bankruptcy law evolves constantly, and it’s important to stay up-to-date to ensure that you file properly. Your state’s website should have the information that you need.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Do some research about these options so you can choose the best one. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Chapter 13
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Filing for bankruptcy is not recommended when you have income more than your debts. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
Make sure that you act at the appropriate time. Timing is critical, particularly when it comes to filing for bankruptcy. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Bankruptcy is a challenging time and can create a huge amount of mental and emotional stress. Working with a good bankruptcy lawyer can help make the process a lot smoother and less stressful for you. Don’t make your choice to retain a particular lawyer simply because they are the cheapest. The cheapest attorney may not be the best, but the most expensive may not be the best either. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. You might even go to a bankruptcy hearing to watch how a lawyer presents his case.
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. Omissions or errors may cause your case to take more time to resolve, or even be rejected entirely. Even small amounts of money contribute to your overall financial picture, so do not exclude them. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
Before petitioning, you need to know what the personal bankruptcy rules are first. You need to be aware of any issues you will encounter with the bankruptcy code. If the regulations are not followed, your case may be subject to a dismissal order. Make sure you have a decent understanding of the bankruptcy process before you proceed. This will help your process go smoother.
This article outlined a few different types of personal bankruptcy. These different choices can be intimidating, but they really aren’t once you get a handle on them. Take the time you need to think clearly and analyze the information. Take your time and think carefully about your decision before taking action.
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