Are your debts out of control and you think that your only escape is bankruptcy? Fear not, you are in good company. There are a lot of people who have turned to bankruptcy as the solution to their financial problems. This article can help you make sure the process starts properly.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States There is solid advice available from the NACBA, (Consumer Bankruptcy Attorneys’ association) the ABI, (American Bankruptcy Institute) and the United States Department of Justice. The more knowledgeable you are, the more you can be sure that you are making the right decision and that you are taking the right steps to ensure your personal bankruptcy goes as smoothly as possible.
Exhaust every other option before making the decision to file for personal bankruptcy. There are other options available, such as credit counseling for consumers. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Determine which of assets are safe from seizure and which are not before filing for personal bankruptcy. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. It is important to know what types of possessions may be taken away before they actually are seized.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Most lawyers offer free consultations, so talk to a few before making your decision. Don’t hire an attorney who fails to address all your concerns and questions. After your consultation, take your time to make your decision. You could even go to different lawyers for advice.
Before filing for bankruptcy ensure that the need is there. Sometimes consolidating your existing debts can make them more manageable. Filing a claim can take a long time and cause much stress. You will have trouble getting credit down the line. Because of this, filing for bankruptcy should only be used as a last resort.
Chapter 13
Find out more about Chapter 13. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Keep in mind that missed payments will trigger dismissal of your case.
Remember to spend some quality time with your loved ones. The process for bankruptcy can be hard. Not only is the process long, but it can be stressful, and many people feel ashamed when they do it. A lot of folks decide to hide themselves from the world around them until the end of the process. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Therefore, it is important that you continue to spend quality time with your loved ones despite, in spite of your current financial situation.
Don’t file bankruptcy if you can afford to pay your debts. Although bankruptcy might seem to be an easy way of being able to pay for your debts, you must remember that it is something that will remain roughly about 7 to 10 years in your credit report.
If you really want to keep your vehicle, speak with your lawyer about possible choices. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. In order for this to be considered, your car loan must be one with high interest, you need a solid work history and the car should have been bought 910 days or more prior to you filing.
Before filing for bankruptcy, you must be educated on the specifics of all bankruptcy laws. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Also, the filer can not increase their debt before filing.
Although it is tempting to toss out the idea of ever owning credit cards again, think again. This is not wise because you need to rebuild a good credit file. If you don’t ever use credit, your credit history will not improve, and you may not be able to purchase important things like a home and car. Start with one single credit card, and rebuild your credit once more.
Produce a comprehensive list of everything you owe. This will be where you start your bankruptcy filing. Be sure you’re including every debt. Be certain to comb through your financial records to ensure the accuracy of the dollar amounts listed. Take care not to miss any debts that you need to disclose, or you will be responsible for paying them back after you have filed for bankruptcy.
Ensure that you include any debt to be eliminated on bankruptcy filing papers. Any debts you forget to list will not be discharged. It is your job to make sure everything important is written down, so that you don’t have to pay debts that could’ve been discharged.
As you can see, you are not alone in your need to fix your finances by choosing bankruptcy. Having read this article, you should feel better prepared to navigate this process. Use the above tips to make sure the bankruptcy process goes smoothly.
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