The national economy remains in poor condition. When the economy is bad, people lose their jobs and that means debt begins to pile up. Debts result in bankruptcy, which is never a good thing. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
Lots of people have to claim bankruptcy when their bills are larger than their income. If you find yourself going through this, you should know all about the laws that are in your state. Every state is different when it comes to dealing with bankruptcy. Your home is safe in some states, but in others it’s not. It is important to be cognizant of the laws in your state before filing for bankruptcy.
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 prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. The person you choose to file with needs to know both the good and bad aspects of your finances. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
Keep working to improve your situation. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. You should be able to get your possessions back if they have been taken away from you within 90 days before you filed for bankruptcy. A lawyer will be able to assist you with filing the paperwork to get the items back.
Chapter 13
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. You will be removed from any contracts you have with your creditors. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You must know about the different bankruptcy types, and how each can affect you.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If there is anything that you don’t understand, go over it with your lawyer so that you can make the best decision.
Be sure that bankruptcy really is your best option. Some people have great luck with handling debt with debt consolidation, which means taking out only one loan to pay off many loans. Filling for bankruptcy could be a long and stressful process. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. You only want to file for bankruptcy after you have exhausted your other options for dealing with your debts.
The economy is not in great shape right now, and although things are slowly getting better, there are still large numbers of people out of work and in debt. Even without steady income, there are things you can do to avoid bankruptcy. Simply remain persistent and positive. Opportunities will eventually come your way. Keep these thoughts close and it will enable you to have a better chance of avoiding the need to file bankruptcy. Good luck to you.
This is a limited-time offer. We are not able to guarantee availability if you wait!
