Although going through bankruptcy can be very hard, it is sometimes necessary. Before filing for bankruptcy, it is important that you fully understand what it means and what is involved in the bankruptcy process. Keep reading for some solid wisdom from people who have themselves gone bankrupt.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Be completely honest whenever you file for personal bankruptcy. Hiding any asset or liability is a risk that will bite you in the end. It is necessary to be open regarding both the positive and negative aspects of your financial life. You are in this situation, now help them to give you the best assistance possible to deal with it. You do that by giving full disclosure and holding nothing back.
If you are about to file for bankruptcy, then make sure you hire a lawyer. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. A personal bankruptcy lawyer will be able to help you and ensure you are doing things the proper way.
Chapter 13
Do some research to find out more about Chapter 13 and Chapter 7. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. Any ties that you have with creditors will be dissolved. With a Chapter 13 bankruptcy, you will have to make payments for 5 years before the debts are forgiven. Look into both types of bankruptcy before deciding which one would suit your particular needs.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Be sure you go on the Internet and do your research to see what’s best for you. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Avoid filing for bankruptcy if you make more money than your monthly bills. Bankruptcy may seem to be the easy way out, but your credit report will show the scar for the next ten years.
Repayment Plan
Think about all the choices available to you when you file for bankruptcy. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. Loan modification plans can help if you are dealing with foreclosure. This type of plan allows your lender to work with you eliminating charges, extending your loan, and lowering interest rates to help you pay back the loan without drowning in debt. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. Any co-debtor may well be held responsible for paying off the total remaining amount of the debt, though.
Do not drag your feet when trying to figure out if bankruptcy is right for you. Your debt will only continue to mount as you waiver on the decision, difficult as it might be. By consulting a professional, you will be able to get the advice that you need before everything gets too complicated.
Declaring bankruptcy is not something most people aspire to, but can be unavoidable. Now that you’ve come to the end of this piece, you have some ideas about how the process works. Learning from others who’ve had this experience will help you learn from it as well.
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