≡ Menu

What You Should Know About Personal Bankruptcy

Before you file for bankruptcy, carefully consider if it is the right option for you. You can also avail yourself of other options, such as consumer credit counseling. Bankruptcy will be on your credit report and affect your credit score for many years to come, so it is a decision that should not be taken lightly. Try to use it as a last resort.

TIP! Do not use your retirement fund or savings to pay off creditors. You should not use your retirement savings unless the situation calls for it.

Is your financial situation bad and you think the only solution is bankruptcy? Fear not, you are in good company. Some people have turned to bankruptcy, as it is their only option for getting rid of a bad financial situation. So have a look through the contents of this article to see what you should know about bankruptcy.

Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. There are a number of companies who may take advantage of your situation, so always work with someone that is trustworthy.

TIP! Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. Make sure to get the most up-to-date information concerning the bankruptcy laws in your state.

If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. No matter what you do, do not touch your personal savings unless there is no other option. Although it is quite normal to use some of your savings, ensure that you leave enough in your account for emergencies.

Make sure you know how to differentiate between Chapter 13 and Chapter 7. By researching each type, you can begin to understand which method is right for you. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.

TIP! If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. You can often lower your payment using Chapter 7 bankruptcy.

Never shirk on the truth in your petition for bankruptcy. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.

Bankruptcy is a difficult time that always leads to lots of stress. Be certain that you hire a competent lawyer to minimize the stress and anxiety you are under. Get recommendations and look into other qualifications rather than just choosing based on cost alone. You don’t have to use the most expensive attorney; you just need a good quality attorney. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. You could even attend a court hearing to see how an attorney handles his case.

TIP! Don’t just assume bankruptcy is the right option, especially if you have not considered others. Think about seeing a credit counselor.

Always remind your lawyer of specifics that are important to your case. It is wrong to assume that your lawyer will remember every word you ever utter! This is your bankruptcy case, so do not be afraid to remind your lawyer of any key facts.

Do not take too long deciding that it is time to declare bankruptcy. As with anything in life, putting off important things such as debt repayment can snowball quickly out of control. If you are not sure, gather all of your information and spend a little time speaking with a bankruptcy attorney; their experience can help you make the right decision.

TIP! Filing for bankruptcy may damage your credit less than missing debt payments. The good news here is that, even though the bankruptcy claim will leave a decade-long stain on your credit score, you can still work to repair your credit.

Prior to filing for bankruptcy, discover which assets cannot be seized. Bankruptcy exemptions are properties may not be seized during bankruptcy. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.

List any debt you have. This is going to be the foundation of your filing for bankruptcy, so be certain to include every debt you know about. Remember to go through all of your records and try to determine the exact amount. Take care not to miss any debts that you need to disclose, or you will be responsible for paying them back after you have filed for bankruptcy.

TIP! A few months after bankruptcy is complete, get your credit report copies from the 3 credit reporting agencies. Be sure to check your credit report for accuracy of closed accounts and discharged debts.

Remember from the beginning of this article? You aren’t the only one who is filing for bankruptcy. Unlike other people, you’ll be more educated because of this article. Utilize the tips you learned today and ensure that there is no rough spots when filing for bankruptcy.

Resist the temptation to be dishonest when filing for bankruptcy. Lying about your obligations and assets is perhaps the most significant error you can make. This activity is illegal. If you fail to declare certain assets or debts, you may be held criminally liable for the omission if it was found to be intentional.

Comments on this entry are closed.