The specter of bankruptcy can cause many individuals to break out in a cold sweat. A lot of debt and not being able to support your family can be real frightening. If any of this frightens you, or you’re currently living this particular nightmare, then the contents of this article are going to prove of good use to you.
Consider all options before deciding to file for personal bankruptcy. Look into other options, such as consumer credit counseling. Bankruptcy is a permanent part of your credit, so before you make such a big decision, you might want to explore all other choices so that your credit history is affected as minimally as possible.
Bankruptcy Petition
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Don’t avoid telling your lawyer specific details with your case. Don’t assume that they’ll remember something important later without having a reminder. All information submitted to the court with your signature needs to be double checked.
Prized Possessions
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
Keep working to improve your situation. 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.
See if there is an alternative you can use before declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. By law, paralegals and assistants can not give legal advice, so be sure that you are meeting with an actual attorney. Look for an attorney until you find one you feel comfortable with.
Don’t file for bankruptcy if it is not completely necessary. It might be possible to consolidate some of your debt instead. Bankruptcy cases are long, anxiety-filled experiences. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
Unsecured Debt
Consider if Chapter 13 bankruptcy is an option. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. Declaring bankruptcy can assist you in consolidating your debt so you can repay it more easily. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. However, if you were to miss a payment, the court would dismiss your case right away.
Bankruptcy can be quite frightening, so it is understandable that many people are afraid of it! Even though you feared bankruptcy before, this article can rid you of that fear. Use the personal bankruptcy information here as you work your way through your financial situation and make your life situation better for you and your family.
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