Bankruptcy can be both a relief and a major stressor. The negative is that you will have to allow others to delve into your personal financial situation, and be open to it. On the other, however, after the bankruptcy has been discharged, you can get a fresh start and begin to re-build your credit. These tips can make bankruptcy much easier.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. Bankruptcy exemptions are properties may not be seized during bankruptcy. You need to read the exemptions for your state, so you know what property you can protect. 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.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Only choose an attorney once all your concerns are answered to your satisfaction. After your consultation, take your time to make your decision. Consulting with several attorneys will also help you find someone you trust.
See if there is an alternative you can use before declaring bankruptcy. For example, consumer credit counseling programs can help if your debt isn’t too large. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Protect your house. Filing bankruptcy does not necessarily mean that you will lose your house. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
Before proceeding with your bankruptcy, it’s a good idea to start spending ample time with the people you care about most. The process for bankruptcy can be brutal. It takes a long time, it can be stressful, and people feel unworthy, guilty and ashamed. A lot of people hide away until the entire proceedings have been played out. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.
Know your bankruptcy rights. Some bill collectors will tell you that your debts can’t be bankrupted. There are only three main classes of debts that are non-dischargable: taxes, child support and student loans. If a collector uses this tactic about debt that can, in fact, be discharged through bankruptcy, report the collection agency to the attorney general’s office in your state.
Find the right time to take action. Filing at the right time can make things go much more smoothly. There are times when you should file as soon as you can, but in some other situations it may be best to wait for the worst to be over. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Be sure you know the bankruptcy laws before you think about filing. For instance, you may not be aware that a filer is forbidden from transferring assets from his or her name for one full year before the petition is filed. Also, a person cannot legally increase their debt amount on credit cards prior to filing.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. If you were to do this you could be charged criminally with fraud, because the act is intended to rip off the company.
It is possible that a bankruptcy might actually be smarter over the long term than struggling month to month with consistently late or missing payments. It is true that a bankruptcy stays on your credit record for ten years, but you are freed to start improving your credit immediately. A great feature of bankruptcy is its ability to provide consumers with a clean financial slate.
There are positives and negatives when you file bankruptcy. No matter why or what put you in this situation, the best thing you can do right now is educate yourself on the bankruptcy process. After reading the tips we present here, you will be able to manage your bankruptcy filing with ease. Using these tips in the process of filing can make you feel much better.
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