Filing for bankruptcy can be relieving and stressful, all at once. It is embarrassing having people research into your finances and assets. Yet, once this process is done, you can breathe again because debt collectors will stop calling you. The following article will give you advice to make filing for bankruptcy simpler.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A qualified bankruptcy attorney will guide you through the steps and help you do everything properly.
Speak to a bankruptcy attorney about what new laws may be going into effect before your bankruptcy filing. Bankruptcy laws constantly change and it’s crucial you know about them so you the process of filing for bankruptcy goes smoothly. To learn about any changes, search the Internet or contact your state’s legislative office.
Safeguard your home. Filing for bankruptcy does not guarantee that you will lose your house. 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. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. Learn the benefits and drawbacks of each type before deciding which is right for you. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Chapter 7
Before filing for bankruptcy under Chapter 7, make sure that you consider the implications this will have on any of your co-debtor, who are usually family members, close friends or business associates. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. However, anyone sharing the loan with you may be forced to pay back the entire amount for the amount in full, which spell financial disaster for them.
You can still take out a car loan or mortgage while you are in Chapter 13 bankruptcy. However, it can be more difficult. You must meet with a trustee to gain approval for a new loan. Present a planned budget that shows how you can take on the loan payment and stay current. You will always have to let them know why this item needs to be purchased.
It is in your best interest to be abreast of your rights in petitions for bankruptcy. Bill collectors can try to scare you into believing that your debt will not be cleared. Most states allow for the majority of debt to be included on a bankruptcy. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
Pick the right time to file. The timing of your filing could be important to its success. There are occasions where it pays to delay and others where a quick decision is the best option. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Filing for bankruptcy is hard on anyone, and can cause extreme amounts of stress. To help yourself deal with this stressful situation, make sure you hire a legitimate attorney. Don’t hire based solely on cost. You don’t have to use the most expensive attorney; you just need a good quality attorney. Get referred from others who’ve been in the same situation, check the BBB, and interview several people through free consultations. If you wish, you can attend a bankruptcy hearing and witness your attorney in action.
Do not forget to list each and every debt you have. If you do not do so accurately, your petition could be dismissed, or at the very least delayed. Even small amounts of money contribute to your overall financial picture, so do not exclude them. This might take the form of odd jobs, extra cars and outstanding personal loans.
There are many pluses and minuses to filing bankruptcy. No matter why or what put you in this situation, the best thing you can do right now is educate yourself on the bankruptcy process. The tips in this article can help you handle bankruptcy more easily. Use these tips and you’ll see how they make you feel better about dealing with the processs.
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