It’s important that you understand what bankruptcy is and how it will change your life before you attempt to file a claim. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. You will find that the process of filing for personal bankruptcy is easier and less of a hassle with the more information on the subject you gather ahead of time.
It’s not uncommon for people to look down on others who choose bankruptcy, but one day find themselves in the same situation. Changing circumstances, like losing a job or divorce, can create a situation where claiming personal bankruptcy is the only choice possible. No matter how you found yourself looking at bankruptcy as an option, continue reading so that you can learn how to move forward.
Don’t be reluctant to remind your lawyer about specific details he may not remember. Don’t just assume that the attorney will remember it automatically. Ultimately, this is your bankruptcy and your financial future, so never hesitate to advocate on your behalf.
Never lie about anything in your bankruptcy petition. 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.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. The Bankruptcy Code contains a list of various assets that are excluded from bankruptcy. Prior to filing for bankruptcy, it is critical that you go over this list, so that you know if you can expect any of your most valuable possessions to be seized. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
Never pay to have a consultation with a lawyer, and ask a lot of questions. Since most attorneys offer free consultations, meet with a few attorneys before deciding who to hire. The lawyer who properly answers your questions is the one you should hire. You do not need to make a decision immediately after the consult. This allows you time to speak with numerous lawyers.
Do some research to find out which assets you could lose by filing for personal bankruptcy. There are several assets which are exempt from bankruptcy; therefore, consult the Bankruptcy code. Make sure to review the list before filing a claim so you know if your valuables will be subject to seizure. Without reading the list, you may be shocked at which possessions can be taken from you.
Make certain that you comprehend the differences between Chapters 7 and 13. The Chapter 7 variety can help you eliminate your debts almost entirely. This type of bankruptcy ends any relationship you might have with creditors. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. It is worth while to take your time to research both types of bankruptcy to decide which option works best for you, and your financial situation.
Do not abandon hope. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. Consult with a lawyer who can advise you on what you need to do to file a petition.
Ensure that you bankruptcy is your best choice. Perhaps just consolidating some of your existing debt, could make them easier to manage. Going through a bankruptcy is a long and stressful process. Remember that your credit will be affected by the mark of personal bankruptcy for a long time. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
If your vehicle is in question, perhaps your attorney can assist in lowering your payments. Chapter seven bankruptcy often provides for the lowering of payments. You need to have bought your car 910 days before you file, have a loan with high interest and you’re also going to need a good work history.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Make your decision after all of your questions have been answered. You need not decide right away. You could even go to different lawyers for advice.
If you filed for Chapter 13 bankruptcy, you can still get a mortgage or a car loan. Of course, it’s difficult. You will have to see your trustee and the approval for this new loan. You will need to make a budget and prove that you will be able to afford your new loan payments. They may also want to know why you believe you need the loan.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Write down a list of every debt you have. You’ll need to know all your debts to file for bankruptcy. Write down the exact amount. Don’t just guess. Don’t hurry through this task; the information needs to be correct for you to receive a discharge.
Before filing for bankruptcy ensure that the need is there. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. A bankruptcy filing takes a great deal of time, and it can be extremely stressful. It will also make it tough for you to secure credit after your filing is complete. You have to make certain that you absolutely have no other choice.
Make sure all your debts are included in the discharge so you can avoid filing unnecessarily. Student loans are one kind of debt that will have to be paid off even after declaring bankruptcy. Try using a loan consolidation service or a type of credit repair agency to reduce debt.
If you’ve already tried everything you can think of to dig out of your financial mess, it might be time for bankruptcy. Don’t carry the weight of the world on your shoulders. If the circumstances that brought you here were not within your ability to control, let go of the stress and guilt associated with them. You will see treasured information in the article that follows.
If you have found yourself in a position were bankruptcy is a must, you need to take a look at how you got to that point in the first place. A large, unplanned hospital bill can happen to anyone; however constant overspending on shopping is an issue that needs to be addressed. If you find yourself overspending on unnecessary items, consider getting credit counseling.