Considering Bankruptcy? Read These Important Tips First!

The whole process of filing bankruptcy is complicated. There is not simply one type of bankruptcy, so the choice you make will be determined by your debts and what finances you have. Prior to filing your petition, you really need to gain an understanding of how personal bankruptcies work. In the following paragraphs, you’ll find some tips that will get you off to a good start.

Think through your decision to file for bankruptcy carefully before going ahead with it. Avail yourself of other options, including consumer credit counseling, if they are appropriate for your situation. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.

Always be honest when filling out paperwork. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.

Don’t avoid telling your lawyer specific details with your case. Never assume that they can remember all details without reminders. Speak up if something is troubling you, as this is your future we are talking about here.

If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you aren’t aware of this, you could lose some assets that you value.

Don’t give up. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Get help from your lawyer to file a petition so you can get your items back.

Any bankruptcy consultation should be free of charge. Most attorneys offer free consultations, so meet with a number of them before you retain one. Don’t hire an attorney who fails to address all your concerns and questions. You don’t have to make your decision right after this consultation. This offers you the opportunity to speak with other attorneys.

Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, you want to look into credit counseling. This is the best option for small debts. You may also find people will allow you to make lower payments. If that happens, get records of the debt modifications.

Don’t file for bankruptcy unless it’s absolutely necessary. Consider whether debt consolidation may be a more viable alternative. Bankruptcy is a stressful process. It will have a major effect on your credit as time goes on. Therefore, before you file for bankruptcy you need to consider all of your alternatives.

Loved Ones

Remember to spend some quality time with your loved ones. Bankruptcy can really wear down your emotional reserves. 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. However, you will only feel worse about what has happened, which may lead you into depression. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.

If you make more money than what you owe, filing for bankruptcy is not a good option. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.

File at exactly the right time to maximize the effect of your bankruptcy. Filing at the right time can make things go much more smoothly. There are occasions where it pays to delay and others where a quick decision is the best option. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.

Refrain from feeling shameful about your bankruptcy. Feelings of low self-worth, shame and guilt are common for those who have come to the point where bankruptcy is their only option. However, having this feeling about yourself isn’t going to help anybody, and your health could even be compromised. Focusing on the positive during this stressful time is a good strategy for coping with your ordeal.

Before you file, make sure you understand the laws as much as possible. For instance, you are not allowed to move assets from your name to someone else’s for a year before you file. Also, it is illegal to load up your credit cards with debt right before filing occurs.

If you know that you are about to file for bankruptcy, don’t exploit the information asymmetry and get huge cash advances on your credit cards. Not only is this fraud, but you could still be liable to repay the money at the end of the day.

This article has hopefully made it clear that declaring bankruptcy is a big decision that should be considered at length. Once you have determined that filing for personal bankruptcy is the right choice for a you, engage an experienced and respected lawyer. With the help of a good lawyer, you can make your way through the process easily and secure in the knowledge that you are doing it right.