Bankruptcy is a decision and should not be lightly considered. Learn as much as you can prior to doing anything.
When you feel certain that you must file for personal bankruptcy, refrain from squandering your life savings to pay off unsecured debt. Leave your retirement accounts untouched unless there is absolutely no other alternative. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Bankruptcy Laws
If you’re in this situation, then learn about the laws where you live. Each state has its own bankruptcy laws. Your home and other major assets may be protected in your state, but in others it’s not. You should be aware of local bankruptcy laws before filing for bankruptcy.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. Whoever provides your legal consultation must be privy to all of your financial information. Don’t withhold information, and create a smart way of coping with the reality of the situation.
Be certain to gain a thorough understanding of personal bankruptcy by researching reputable sites that offer good information. Department of Justice and National Association for Consumer Bankruptcy Institute are two such places to look.
Don’t avoid telling your attorney of any specific details of your case. Don’t just assume that he will remember something you told him weeks ago. This is your bankruptcy case, so never be nervous about speaking your mind.
If you’re filing for bankruptcy soon, be sure you are going to hire a lawyer. The topic of bankruptcy is a complicated one and it is important that you know all about it. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
Unsecured Credit
You might find it difficult to obtain an unsecured credit after filing for bankruptcy. If that’s the case, think about applying for a couple of secured credit cards. This at least shows you to start building a good credit history while minimizing the bank’s risk. After using a secured card for a certain amount of time, you may be able to get unsecured credit again.
Do what you can to keep your home. Bankruptcy filings do not necessarily mean that you have to lose your house. Depending on certain conditions, you may very well end up being able to keep your 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.
Don’t pay for the consultation and ask him or her anything you want to know. Most lawyers offer free consultations, so meet with a number of them before you retain one. Only make a lawyer if you have met with several attorneys and all of your concerns and questions have been addressed. It is not necessary to come to a final decision right away. You can take as much time for consulting with different lawyers.
Before pulling the trigger on bankruptcy, make sure that a less-drastic solution isn’t more appropriate. For example, if you only have a little bit of debt, try a type of consumer counseling program.You may have luck negotiating lower payments by dealing directly with creditors, but make sure that you get written records of any debt modifications to which you agree.
Consider Chapter 13 bankruptcy for your filing. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. Expect to make payments for up to 5 years before your unsecured debts are discharged. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
Filing for bankruptcy will not mean you have to lose your home. Depending on certain conditions, you might be able to keep it. You are still going to want to check out the homestead exemption either way just in case.
Before filing for bankruptcy consider every available avenue. It might be possible to consolidate some of your debts. It is not a quick and easy process of filing for bankruptcy. It will have a long-lasting effect of your credit in the future. This is why you explore your other debt relief options first.
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. If you choose Chapter 7, you are no longer responsible for joint debts. However, creditors will want to hold your co-signer responsible completely.
Going through bankruptcy is never easy. Lots of people decide they need to hide from everyone else until it is all done. This is not a good idea because staying alone could cause you to feel depressed. So, it is critical that you keep spending time with the ones you love, regardless of your financial circumstances.
As you are aware from the previous paragraphs, bankruptcy is not something that just happens. Many steps must be taken, and they must be completed properly. By taking what you have learned here and applying it, the process of bankruptcy will be much smoother.
Prior to going through with a bankruptcy filing, be sure to list out every one of your expenditures and debts. This is going to be the foundation of your filing for bankruptcy, so be certain to include every debt you know about. Include your exact balance on each account. Take your time during this process; don’t rush and make sure all of your figures are correct.