The mere thought of bankruptcy is enough to strike fear into the hearts of people. The thought of losing their homes and cars and being overcome by debt is something they rightfully fear. If these circumstances sound familiar, you stand to benefit from the tips that follow.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Credit Card
You might experience trouble with getting unsecured credit after filing for bankruptcy. A great way to rebuild your credit is to apply for a prepaid credit card. Using a secured card not only helps to rebuild your credit, but it also keeps you from going more in debt with credit card bills. Once creditors see that you are making an effort to restore your credit, they may allow you to get an unsecured card in the future.
If you are planning to file for bankruptcy, be sure to learn what types of assets you will be able to keep and which can be seized. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. If you fail to do so, things could get ugly.
Don’t ever pay a bankruptcy attorney for a consultation, and ask a lot of questions. Seek free consultations from a handful of lawyers, before deciding which one to hire. Do not make any final decisions until every question you have has been answered. There is no need to offer an immediate hire, so take your time. So, this gives you plenty of time to consult with several attorneys.
Chapter 7
Do some research to find out more about Chapter 13 and Chapter 7. In Chapter 7 most of your outstanding accounts will essentially be erased. You will be removed from any contracts you have with your creditors. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.
It is imperative that you know for sure that bankruptcy is the option you need. Perhaps consolidating your existing debt can make it easier to manage. Going through the bankruptcy process is a long drawn process which at times can be incredibly stressful. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. This is why it is crucial that you explore your other debt relief options first.
Bankruptcy Process
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. It can be several months between the initial filing and the final discharge of debts. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. Life will get better; you just need to make it through the bankruptcy process.
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. When filing Chapter 7, you are not legally responsible for the debts in your name. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.
Because bankruptcy is such a challenging time that a great deal of stress, both mental and emotional, may be involved. You need to do your research to find a good bankruptcy lawyer. Do not let price be the only factor. What you need is a thoroughly competent lawyer, and this does not imply that you have to pay through the nose. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. You could also sneak into court to watch a real live bankruptcy proceeding to see how that attorney handles the situation.
It’s normal for people to be scared of bankruptcy, since it really is a frightening process. You may have lived in fear of it before, but you no longer have to now, thanks to this article. Utilize these tips immediately to improve your financial situation.
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