Personal bankruptcy can be overwhelming during the process, but a load off your shoulders once you get through it. On one hand, people will be scrutinizing your private financial affairs. The positive is that once the process has been completed, you will be debt-free and free of harassment from creditors. You can make the bankruptcy process easier on yourself by keeping the following tips in mind.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Make sure you are completely honest when filing for bankruptcy. Hiding your assets is never wise. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Be completely honest in your paperwork to avoid a situation that may end in severe punishment.
Be persistent in researching information about filing for bankruptcy and consult a qualified personal bankruptcy attorney. 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 it has been 90 days or less between the repossession of your property and your filing, you might be able to get your property back. Talk with an attorney who can guide you through the process of filing a petition.
Your most important concern is to protect your home. Filing for bankruptcy does not always mean you will end up losing your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Before making any decisions, discuss the information you have learned with your lawyer.
Learn what you can about Chapter 13 bankruptcies. Chapter 13 bankruptcy is a good choice for people whose unsecured debts amount to lower than $250,000 and who receive a regular income. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. This repayment period usually lasts from three to five years. If you make your payments faithfully during that time, any remaining unsecured debt will be eliminated. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.
If you are concerned about keeping your car, check with your attorney about lowering the monthly payment. It is possible to get your car payment lowered if you file using Chapter 7. Your car must have been purchased more than 910 days prior to filing, be a high interest loan, and you must have had a steady work history for this to work.
If you are moving forward with a Chapter 7 bankruptcy, you need to learn how that can negatively affect anyone who shares loans with you. If you choose Chapter 7, you are no longer responsible for joint debts. However, your creditors will be able demand that your co-debtor pays the debt off in full.
Pick the right time to file. When filing for personal bankruptcy, it is very important that you act at the correct time. Sometimes, filing as soon as you can is best, while other times, it is wise to get past the worst problems first. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
Go ahead and file for personal bankruptcy as soon as you realize it is necessary. It is quite common for people to linger on hoping that their financial difficulties will somehow resolve; however, this very rarely happens. Debt can snowball very fast, and by ignoring it, you increase the chances of worse problems, such as foreclosure and wage garnishments. Speak with a bankruptcy lawyer as soon as you become aware that you cannot handle your debts.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. There are many pitfalls you can easily fall into, such as transferring away assets to prevent them from being included in the filing. Maxing out your credit cards immediately before filing is also illegal.
Research the rules and regulations of personal bankruptcy before you file. You want to understand what is going to happen when you file for your specific case. There are mistakes that may cause the dismissal of your case. Take the time to research personal bankruptcy before moving forward. The entire process will be much easier when you move forward with awareness.
There are good things as well as bad, in regards to filing for bankruptcy. No matter what your reason may be for going through with it, you need to know as much as possible about it before you begin. You will have an easier time with your bankruptcy filing thanks to this article’s tips. Apply all of the knowledge you have gained from this article and you will be on your way to feeling more at ease about your bankruptcy.