It’s not fun to file bankruptcy. Bankruptcy can be ugly, embarrassing and a tough thing to talk about. If you decide to file bankruptcy, research the laws in your state and retain the services of a qualified attorney.
Keep working to improve your situation. Many times you can get repossess property back once bankruptcy has been filed. 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. Get help from your lawyer to file a petition so you can get your items back.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. 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. You can take as much time as you need to meet with different lawyers.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Check into less drastic solutions prior to declaring bankruptcy. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. You can also talk to creditors and ask them to lower payments, but be sure to get any debt agreements in writing.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Make sure that you meet with an actual lawyer and not an assistant or paralegal, as these people are not allowed to provide legal advice. Hiring a lawyer could help you become comfortable with the legal things that you will encounter.
Make sure your home is safe. Bankruptcy filings don’t necessarily have to end in the loss of your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Make sure you are acting at the appropriate time. They say timing is everything, and this rings true when filing for bankruptcy. In certain situations, you should file right away, but other situations will warrant you waiting. Speak with a bankruptcy lawyer to see when is the best time for you to file bankruptcy.
Lots of individuals who previously filed bankruptcy vow to shun the use of credit cards or lines of credit in the future. Since using credit responsibly is the only way to improve your credit score, this is not such a good idea. If you do not use credit, you will not rebuild the type of credit you will need in making future purchases. You can start building up a more responsible credit history by opening one credit card account.
Find out how much you owe to your different creditors. This is what you will use when you file for bankruptcy, so make sure every debt you owe is on the list. Go over all your financial records and do not forget anything. It is important that you take your time here; you need to ensure your figures are correct if you want to get these amounts discharged.
A couple months after your bankruptcy is complete, acquire copies of your credit reports from each of the three credit reporting agencies. You should double-check all the information on those reports to ensure their accuracy. If there are any errors, make sure that you take action to resolve them as soon as possible.
Rethink getting divorced if you are in a bad financial situation. Many people divorce, and then need to file bankruptcy because they could not see what troubles laid waiting for them. If divorce is imminent in your future, then you may want to plan your finances accordingly so you are not forced to file for bankruptcy.
If after filing for Chapter 7 you aren’t qualified for Homestead Exemption, there is a possibility you can file Chapter 13. Sometimes, the best course of action may be to simply re-file your case as a Chapter 13 bankruptcy. Talk to your lawyer to determine if this is true in your case.
If you are going to get hit hard on your taxes, do not assume that bankruptcy is an out for you. Some filers pay their taxes due with a credit card and then file for bankruptcy. The reason for doing this is that they assume that it is possible to avoid paying taxes because the balance is in the form of a credit card balance. But, this is already covered by bankruptcy law, so you will simply end up owing both.
Once you have realized you must file for bankruptcy, there is nothing to be gained by putting it off. Once you have decided that you need to file bankruptcy, it is best to get on with it. Your financial position may deteriorate even further and make an already stressful situation even less tolerable. You will feel the negative effects in the rest of your life. If you put off filing, you’ll regret it.
As this solid advice demonstrates, there are other options besides bankruptcy. By following the tips presented here, you can avoid filing for personal bankruptcy. Use the information in this article to change your financial future and never have to worry about credit again.