It may not be an easy decision to come to; however, bankruptcies are often necessary. It is always best to go forward, armed with the best information and assistance you can find. You need to know what you are up against. Keep reading for some solid wisdom from people who have themselves gone bankrupt.
Check the accuracy of all information before it is filed. Don’t just assume that the attorney will remember it automatically. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Prior to filing for bankruptcy, discover which assets cannot be seized. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Do not despair, as it’s not the end of the world. Bankruptcy might help you get back things you thought you’d lost and had repossessed, such as electronics, vehicles and jewelry. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Consult with a lawyer who is able to assist you in the filing of your petition.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, consumer credit counseling programs can help you by renegotiating your debts with your creditors into payments that you can afford. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Chapter 7
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 is the best option to erase your debts for good. All of your financial ties to the people you owe money to will disappear. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Talk to the lawyer and not his assistant, who may not be legally able to help you. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Consider Chapter 13 bankruptcy. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Make sure you consider implications of bankruptcy before filing for Chapter 7. Speak to an attorney or read the bankruptcy laws in your state to find out if certain loans can be excluded from your filing. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.
While no one wants to go through bankruptcy, at times it cannot be avoided. You should now have some excellent advice from people who have personally struggled with the bankruptcy process. You can take comfort in the fact that others have been in this situation before you, so take heed from their experiences to help you deal with your own.
This is a limited-time offer. We are not able to guarantee availability if you wait!
