When your debts get out of control, it’s common to start worrying about losing your possessions and assets that you care about most. Stop the calls from your creditors, and look over your finances. You may discover that you need to file for bankruptcy. Keep reading to gain useful insight about navigating the process.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. Bankruptcy exemptions are properties may not be seized during bankruptcy. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. This will ensure that you do not have any surprises once you have filed bankruptcy.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. Penalties may include fines, imprisonment or denial of the filing. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To stay up-to-date on these laws, check out your state’s government website.
Many bankruptcy attorneys offer the first consultation with no charge, so consult with several before deciding on one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Considering several different lawyers can help find someone to trust.
Always protect your house. Filing bankruptcy does not necessarily mean that you will lose your house. Check your home’s current value to see if it has gained equity and get your first and second mortgage papers together. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
If you are earning enough to cover your bills, don’t file for bankruptcy. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.
Speak with your attorney about ways you can keep your car. Often, you can negotiate a lower payment through bankruptcy. The car loan must have been initiated prior to 910 days before your petition. It must carry a loan with high interest. You should also have a steady history of work.
Before filing for bankruptcy, establish the fact firmly in your mind that you have nothing to be ashamed of. A lot of people have a negative opinion of bankruptcy, mostly because they misunderstand this procedure. These feelings do not help you and provide no value. These difficult financial times can easily take their toll on anyone. One of the best ways to cope with the situation is to maintain a positive attitude.
Many people who file for bankruptcy vow to stop using credit cards. This may not be such a great idea because you still need credit to to help build better credit. You will not be able to get your credit back to a respectable score if you don’t use credit. Get one credit card and use it wisely to get on the right path.
Choosing a good lawyer is an important step in the process. Bankruptcy law seems to be a haven for new, inexperienced attorneys. Be sure the attorney you retain has at least five years of experience and is board certified. One resource that should prove extremely helpful is the Internet. You should be able to find the lawyer’s record online, as well as reviews from their previous clients.
Your filing should include all debts and creditors you need to eliminate. Any debts omitted from the paperwork will not be covered in the discharge. It is up to you to ensure your debts are written down so you don’t need to pay bills that might have been discharged.
When you are in the process of filing for bankruptcy, ask your attorney if there is a verification phone service number that you can give to debt collectors. Creditors can receive confirmation that you are indeed filing for bankruptcy protection from them if they give that number a call. This will put an end to annoying phone calls from collectors.
Chapter 13
After you have filed for chapter seven bankruptcy, you may find that you are not qualified to take the homestead exemption. If this is the case, you may wish to file for chapter 13 bankruptcy in regards to your mortgage. In some cases, it may be best to convert your entire Chapter 7 case into a Chapter 13 case, so you should talk to your attorney about your next step.
Look over your document and make sure it’s accurate. You might have an attorney fill out the paperwork, but the court will penalize you, not the attorney, if there is inaccurate information filed on your behalf. Always remember that attorneys usually take on multiple cases at a time, which means they’re not always going to get 100% of the details right. That is why you must stay on top of every piece of your paperwork, and make sure it is done correctly.
Filing for bankruptcy is a possibility, but you should consider other options first. Keep in mind that many scam debt-consolidation services have sprung up since the increase in bankruptcies, so do your homework before choosing one. Keep these tips in mind so you can avoid debt in the future.
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