Declaring bankruptcy is a negative process. Bankruptcy can mean bad things and it is usually an embarrassing thing to mention to people when they ask about your financial status. So don’t give in to bankruptcy, use this article as your guide to figure out how.
It is essential when going through bankruptcy that all of your income and assets are reported openly and honestly. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Always remind your lawyer of specifics that are important to your case. Inaccurate or incomplete information can lead to your petition being denied. Speak up. This is your life, and your future depends on it.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
You should not have to pay for an initial legal consultation, and such meetings are great opportunities to ask lots of questions. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Decide which lawyer you like best buy reviewing all of the lawyers’ answers to your questions. Choose the lawyer who addressed your issues the best. You don’t need to decide what to do right away. Be sure to talk with a number of lawyers, and compare the information you receive.
Bankruptcy Laws
Before you file, make sure you understand current bankruptcy laws. Bankruptcy laws constantly change and it’s crucial you know about them so you the process of filing for bankruptcy goes smoothly. To stay up-to-date on these laws, check out your state’s government website.
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. 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.
Chapter 7
Remember that filing for Chapter 7 personal bankruptcy will not just affect you. Think about the effect it will have on business associates, friends and family or anyone else who may be a co-signer with you. Debts that involved a co-signer can be discharged in Chapter 7 bankruptcy. Creditors, however, will hold the co-signer liable for the entire balance of the debt.
Pick the right time to file. When filing for personal bankruptcy, it is very important that you act at the correct time. While there are times that it is ideal to file soon, there are other times in which you should wait. Talk with a bankruptcy attorney to find out the ideal timing for filing based on your particular situation.
Research your state’s bankruptcy laws before filing your petition. You need to be aware of any issues you will encounter with the bankruptcy code. Some mistakes could lead to having your case dismissed. Take time to research things related to personal bankruptcy before you move forward. Doing this can make the process simpler.
Think about other options before you file for bankruptcy. One option to consider is credit counseling. There are a number of companies that will assist you, many of which are non-profit. With their assistance, you can reduce the payments you have to make and even get some of the interest removed from your debts. You pay them and then they pay the creditors.
Typically, people who have faced bankruptcy swear off credit cards. This isn’t wise since you need to use credit to build credit. You have to reestablish your credit once you hurt it, this way you can still position yourself to take out things, such as home or car loans, in the future. Start with one credit card to get your credit going in the right direction.
Produce a comprehensive list of everything you owe. Only the debts you list on your bankruptcy filing will be discharged, so make sure all of them are included. Remember to go through all of your records and try to determine the exact amount. Remember to take your time here. Rushing through will ensure that some numbers somewhere will be mixed up and then the process will blow up in your face.
Don’t slow down any filing plans before starting a new job. Bankruptcy could still be your best option. The timing of filing is a huge factor. If your case is filed before you begin your new job, any repayment you must do will be calculated without the extra income.
If bankruptcy has you feeling depressed, seek out support from bankruptcy forums on the internet. The whole bankruptcy process is hard to deal with. You may feel uncomfortable around those you love. There are many Internet forums that give you a place to share your emotional and financial struggles with other people who have been in your shoes.
When you have figured out that bankruptcy is your only choice, learn as much as you can about bankruptcy laws. You have a lot to lose or gain from this process. You should make sure to keep up with information and work hand-in-hand with your lawyer to secure a more positive outcome.
As you can now see, you do not have to let bankruptcy consume your soul. The tips written in this guide can lead you to the right path in avoiding bankruptcy. Put this advice to work in your life so that you can avoid damaging your credit rating.
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