It’s very easy to feel contempt for people who declare bankruptcy, but that feeling disappears when filing for it becomes a possibility. Situations like a job loss or a divorce can bring you to a situation where the only solution is bankruptcy. Follow the advice presented here if this describes your situation.
Familiarize Yourself
Generally bankruptcy is filed when a person is facing insurmountable debt. If you’re in this position, it is a good thing to familiarize yourself with the laws that apply in your area. Laws differ from one state to the other. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Familiarize yourself with the bankruptcy laws of your state prior to filing.
Always be honest with the information you give about your finances. 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.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
You should be able to meet with a specialized lawyer for free to ask your questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. It is not necessary to come to a decision immediately following the meeting. You can take as much time as you need to meet with different lawyers.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Be sure to check out a number of lawyers so that you will find one who is just right for you.
Put forth the effort to grasp the distinctions between Chapter 7 and Chapter 13 bankruptcies. Do some research about these options so you can choose the best one. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
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. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Spend time with friends and family to keep your stress levels to a minimum through the bankruptcy filing process. Bankruptcy proceedings can be extremely harsh. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. Many people tend to hide until their process is completed. However, you will only feel worse about what has happened, which may lead you into depression. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
After exhausting every avenue for resolving your financial debts, bankruptcy may be a necessity. Do not let this situation cause too much stress for you. When you read this article, you will find some very valuable information.
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