Bankruptcy definitely causes short-term stress, but if you’re responsible, it can be a relief in the long term. The stress is having to deal with your financial crisis and those involved in the process. However, when your bankruptcy is over, you can re-establish your finances and no longer need to tolerate bill collectors. Here are some simple tips anyone can use to help make the process of bankruptcy go smooth.
Never lie about anything in your bankruptcy petition. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. It is a good idea to consult several attorney before deciding on one. Make your decision after all of your questions have been answered. Take your time choosing the right attorney to assist in your bankruptcy. Be sure to talk with a number of lawyers, and compare the information you receive.
Find a specialized lawyer if you are thinking about filing for bankruptcy. You might not understand all of the various aspects to filing for bankruptcy. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
Bankruptcy Laws
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state’s legislative offices or website will have up-to-date information about these changes.
Learn the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Spend time researching the advantages and disadvantages of filing for each one of these. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Before filing bankruptcy consider every available avenue. Perhaps just consolidating some of your existing debt, could make them easier to manage. Bankruptcy is not a simple, breezy course of action that should be taken lightly. It will also limit your ability to get credit for the next few years. So, consider bankruptcy only as a last resort when you have no other choice.
If you have filed for Chapter 13 bankruptcy, you will still be allowed to apply for and receive a mortgage or car loan. This is a lot harder. You need to speak with your trustee so that you can be approved for a new loan. Create a budget and prove that you will be able to afford it. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.
Take action when the time is right. Timing is critical, particularly when it comes to filing for bankruptcy. For some debtors, immediate filing is ideal, whereas in other cases, it is smart to hold off until a later time. Discuss your particular situation with your bankruptcy attorney to determine the best time to file.
Because bankruptcy is such a challenging time that a great deal of stress, both mental and emotional, may be involved. Be certain that you hire a competent lawyer to minimize the stress and anxiety you are under. Do not solely use cost to determine whom to hire. When it comes to choosing the right attorney, consider quality before cost. Rely on word-of-mouth referrals from others who have filed for bankruptcy, check the BBB, and take advantage of free consultation offers. If you wish, you can attend a bankruptcy hearing and witness your attorney in action.
Research your state’s bankruptcy laws before filing your petition. Without knowing the exact rules, you could inadvertently run into serious issues that could ultimately lead to your bankruptcy failing. If the regulations are not followed, your case may be subject to a dismissal order. Before you go forward, make sure you thoroughly research personal bankruptcy. This will make the process go as smoothly as possible.
Make a prompt decision to accept more responsibility for your financial situation before you file. It is especially important to refrain from taking on any new debt before filing. Bankruptcy judges and creditors may examine current and past behavior as they work to resolve your case. Your most recent behavior should show that you realize the error of your ways and have changed course to become more fiscally responsible.
Bankruptcy is a process that has both benefits and drawbacks. No matter your reason for going through with it, remember that information is essential to the whole process. You will have an easier time with your bankruptcy filing thanks to this article’s tips. Use these tips during the process and feel a little better about it.
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