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Can Personal Bankruptcy Help My Financial Situation?

When bankruptcy seem inevitable it is important not to use your retirement funds or emergency savings to pay creditors. Don’t touch retirement accounts unless you don’t have a choice. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.


Life after a bankruptcy may be quite challenging. As you look at the hole you’ve dug yourself, you might think there is no escape. However, there are some things that can be done to get what you want.

Determine which assets won’t be seized before filing for bankruptcy. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It’s crucial to read that list before filing to see which of your prized possessions can be seized. You wouldn’t want to unexpectedly lose any possessions you treasure.

TIP! Do not give up hope. If you’ve had collateral, such as a car, electronics, or jewelry repossessed for non-payment, you might be able to recover the property when you file for bankruptcy.

Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If this is happening to you, then learn about the laws where you live. Each state has their own bankruptcy laws. For instance, your home might be protected in some states while you might lose it in others. Know what the laws are in your state before filing.

Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.

TIP! Filing for bankruptcy is not recommended when you have income more than your debts. Sure, bankruptcy can get rid of that debt, but it comes at the price of poor credit for 7-10 years.

Do not be afraid to remind your attorney of important specifics of your case. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. All information submitted to the court with your signature needs to be double checked.

Before going through the Chapter 7 filing process, ensure that your co-debtors are abreast of any implications relating to this process. Once you file for Chapter 7 bankruptcy protection, you no longer have legal responsibility for debts that you and any co-signers originally agreed to. However, the creditors could come after your co-signer and demand full payment for the debt.

Personal Property

File when the time is perfectly right. Timing is critical, particularly when it comes to filing for bankruptcy. In some cases, it is better to file immediately, while other situations benefit from trying to get certain finances in better shape before filing. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.

TIP! If you are going to file for bankruptcy make sure you are prompt. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake.

It is important to understand your rights when filing bankruptcy. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Consult with a lawyer who can help you along with filing the petition.

Before petitioning, you need to know what the personal bankruptcy rules are first. You want to understand what is going to happen when you file for your specific case. Making mistakes can have an effect on the outcome of your case. Take time to research things related to personal bankruptcy before you move forward. This can save you a lot of time and make the entire process easier.

TIP! Typically, people who have faced bankruptcy swear off credit cards. Since using credit responsibly is the only way to improve your credit score, this is not such a good idea.

If bankruptcy is an option for you, secure the services of an attorney. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. An attorney will make sure that everything is being done correctly.

Before you file make sure that you are not doing anything to bring yourself in debt any more. It is important not to make your debt larger just before bankruptcy. Judges and creditors consider current history, as well as past history when adjudicating personal bankruptcy. What responsible behavior will ultimately demonstrate is that you’re on the right path. The longer you’re able to show this, the more seriously you’ll be taken by creditors.

TIP! Be sure to list any and all debts that need to be eliminated when you file your bankruptcy paperwork. If you fail to list a debt, it may not make it into your discharge.

Stay abreast of new laws that may affect your bankruptcy if you decide to file. Bankruptcy laws are always changing, and you need to be aware of any changes so your bankruptcy can be properly filed. To learn about these changes, try contacting your state’s legislation office or checking their website.

Always be honest when filing for bankruptcy, even if your situation seems bleak. The worst thing that you could do is to lie about your assets and debts. Aside from that, it’s against the law. You could even spend time in prison for lying about this information.

TIP! Some lawyers utilize free phone service that creditors get referred to when trying to contact you about a debt you owe. All you have to do is give the number for the attorney’s office, which allows them to confirm the validity of your bankruptcy.

When your income surpasses your bills, you should not be filing bankruptcy. While bankruptcy may seem like an easy way out of having to pay back all of the debt that you owe, it is a stain that will remain on your credit report for seven to ten years.

If you file a Chapter 7 bankruptcy only to find that you are not qualified to use the homestead exemption, you might be able to put place your mortgage in a Chapter 13 case. It might even be better to convert from a Chapter 7 to a Chapter 13; talk to your lawyer about this.

TIP! Make sure that the lawyer you hire is has many years of experience dealing with bankruptcy. There are many bankruptcy lawyers available to pick from.

Although you have already filed for personal bankruptcy, don’t make the mistake of thinking that you’re now marked for life. Get on track and stay there to show lenders your positive new efforts. Start now, and by the time you need a home loan or car, you may be able to get one.

If filing for bankruptcy is stressing you out or getting you down, find an online support group to help you through the process. You may feel embarrassed and out of sorts while going through personal bankruptcy, because it is a very stressful process. If you need to, share your experience on the Internet with people who are going through a similar situation and ask for advice on message boards.

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