Dealing with bankruptcy is very tough. As you look at the hole you’ve dug yourself, you might think there is no escape. But remember that there is always a way out of a situation you are in, so do not let bankruptcy scare you.
The primary catalyst for filing personal bankruptcy is having a large amount of debt that can’t be readily repaid. If you’re in this situation, learn about the laws where you live. You will find that each state has their own bankruptcy laws. In some states, your home is protected, while in others it is not. Know what the laws are in your state before filing.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
Before filling for bankruptcy, determine which assets will be exempted from seizure. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Ask for a free consultation with your bankruptcy attorney and ask questions about experience and education. Most lawyers will meet with you for free and give you helpful advice, so meet with several. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. You don’t need to decide what to do right away. You can take as much time as you need to meet with different lawyers.
Prior to choosing a bankruptcy attorney, seek a free consultation with at least three attorneys. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. By researching each type, you can begin to understand which method is right for you. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
Chapter 13
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. 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. Consider that if you even miss one payment, your case will not be considered by the court.
Don’t isolate yourself from family and friends. Going through a bankruptcy can be an excruciating experience. It is often overwhelming, and not quick. Some people may feel embarrassed or feel their self-esteem has taken a beating from it. Some people do not even want to speak with others until the bankruptcy is official. However, this isolation will just make you feel worse, and it could cause you to be depressed. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
Understand the rights you have as a bankruptcy filer. It is not unusual for creditors to claim that their debt is not able to be discharged. What you can’t file on is very small, like student loans or child support payments. If a debt collector tells you this false information, seek the advice of your bankruptcy attorney. You may also want to report the bill collector to the attorney general’s office.
Bankruptcy can be overwhelming to most people, and can be quite stressful. If you want to protect yourself from stress, see to it that you hire a good attorney. Do not choose your attorney based solely on price. Your attorney does not need to cost a lot, but they do need to have a lot of experience. Do not choose an attorney until you have interviewed them, checked with the better business bureau and checked their standing with the bar association. If you want to know more about a specific lawyer, attend a court proceeding and see how the attorney handles herself.
If you are in the situation to need to file for bankruptcy, this article has shown you that it is not the end of your life. When saving money, you’re showing the lenders that you wish to rebuild your credibility. They’ll appreciate it. So start saving and see how much of a change it makes when people view you the next time you go in for a car or home loan.
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