It can be hard, but at times necessary, to file for bankruptcy. The best way to deal with the process is to become educated on the subject. This article contains information that has been gathered from others who have successfully navigated the bankruptcy process.
Don’t hesitate to give your attorney a heads-up about something she has missed. Don’t just assume they already know and that they have these important details committed to memory or written down. This is your future in their hands, so don’t be scared to mention it.
Keep with what you have decided to do. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Get help from your lawyer to file a petition so you can get your items back.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. You don’t need to decide what to do right away. That gives you the chance to speak to a number of lawyers.
Chapter 7
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. If Chapter 7 is what you file, your debts will get eliminated entirely. Any ties that you have with creditors will be dissolved. On the other hand, filing for bankruptcy under Chapter 13 means you will have 60 months to pay your debts back. Both options have advantages and drawbacks, so do your research before deciding.
Safeguard your home. You don’t have to lose your home just because you are filing for bankruptcy. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Avoid filing for bankruptcy if you make more money than your monthly bills. Although bankruptcy may feel like a simple method of getting out of your large debt, it leaves a permanent mark on your credit history for up to 10 years.
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. You can relieve yourself of any liability for debts that you may share with someone else through a Chapter 7 filing. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.
Know the rights that you have as you file for bankruptcy. Don’t take a debt collectors word for it simply because they tell you that you can’t have many or all of your debts erased by bankruptcy. Only a small number of debts are not dischargeable, including student loans and child support obligations. If the debt collector tries to tell you that your debts, which do not fall into those categories, cannot be bankrupted, take a note of it, look up the debt type, and report them to your state’s attorney general office.
Don’t let shame consume you during the bankruptcy process. For many people, bankruptcy is a source of guilt and feelings of worthlessness. Wallowing in these emotions benefits no one, and only serve to harm your own mental health. Remembering to stay positive as you go through financial difficulties is a great way to deal with your bankruptcy filing.
Go over the debts you are currently paying off before filing for bankruptcy. The laws regarding bankruptcy most often prevent you from paying back some creditors for up to 90 days before filing, and friends and family for up to one year. Do your research rather than making financial decisions blindly.
Do not hesitate or stall when determining if filing for bankruptcy is the correct choice for your life and situation. It’s very difficult admitting you need help, but waiting too long can actually make it worse. Take responsibility to talk with a bankruptcy expert sooner, rather than later. The longer you wait, the more difficult the situation can become.
Many people who file for bankruptcy vow to stop using credit cards. This isn’t wise since you need to use credit to build credit. In the future, you will almost certainly need credit to make major purchases, such as a house or a car, and your credit score will be dreadful if you haven’t used credit since your bankruptcy. Choose a single card to get started on your credit repair journey.
Exercise some care when you pick a lawyer to help you file for bankruptcy. You do not want to hire someone who is new to the field of bankruptcy. Often times, people choose lawyers that aren’t licensed properly or that don’t have enough experience. Don’t fall victim to this. By researching online you can check out a lawyer’s credentials, as well as customer reviews and any disciplinary action against him or her.
In difficult financial situations, filing for bankruptcy is sometimes unavoidable. After reading this article, you now know how people who have actually experienced bankruptcy got through the process. By learning from others that have been in the same situation, it will make it easier on you in the long run.
This is a limited-time offer. We are not able to guarantee availability if you wait!
