When a person needs to file for personal bankruptcy, it is not ever a happy moment. Bankruptcy is a touchy subject, and people often don’t want to mention it when someone asks about their finances. Don’t give into it and be sure to use this advice to figure out what you need to know to avoid bankruptcy.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code has lists of various asset types that are exempt during the process. It’s crucial to read that list before filing to see which of your prized possessions can be seized. Without reading the list, you may be shocked at which possessions can be taken from you.
Be brutally honest when you file for bankruptcy, as hiding assets or liabilities, will only come back to haunt you. The professional that helps you file for bankruptcy has to have a complete and accurate picture of your financial condition. Don’t withhold information, and create a smart way of coping with the reality of the situation.
You should be able to meet with a specialized lawyer for free to ask your questions. Most attorneys offer free consultations, so meet with a number of them before you retain one. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs There is no need to offer an immediate hire, so take your time. This will give you extra time to interview several attorneys.
Check into less drastic solutions prior to declaring bankruptcy. If you owe small amounts of money, you can join a counseling program or straighten your finances out by yourself. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Always protect your house. Filing for bankruptcy doesn’t automatically involve losing your home. It is entirely possible that you will be able to keep your home. This is dependent upon the your home’s value and whether or not you have taken a second mortgage. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Filing for Chapter 13 bankruptcy will not prevent auto loans or mortgages from being obtained. There will, however, be obstacles. You will need to secure the trustee’s approval for any new debt obligation. Create a budget and prove you can afford a new loan payment. You should also be prepared to explain why you need to purchase the item.
Know your rights when filing for bankruptcy. Some debtors will try to tell you your debt with them can not be bankrupted. Only a small number of debts are not dischargeable, including student loans and child support obligations. If these are not the categories in which your debts fall, double check to see if the type of debt can be bankrupted. If it can, be sure to file a complaint about the debt collector with the office of the state attorney general.
If you are thinking about filing for bankruptcy, one of the first things you should do is look into the laws of your state. For instance, you need to know not to shift assets into someone else’s name in the year leading up to your filing. In addition, it is unlawful for the filer to increase the amount of debt they are carrying on their credit cards right before they file.
Make sure you know what you should be doing when you file for bankruptcy. There are many laws which govern bankruptcy; therefore, to protect your bankruptcy case, know the rules. Some mistakes could lead to having your case dismissed. Before you go ahead, devote a little time to research and the topic of personal bankruptcy. This will make the bankruptcy process much simpler.
List out who you owe money to. Be sure your list is complete as it will form the basis of your personal bankruptcy filing. Go over all your financial records and do not forget anything. Don’t be careless about this step, as discharge depends on submitting the correct numbers to the court.
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. It’s also illegal. You could even spend time in prison for lying about this information.
If you cannot qualify for a Homestead Exemption when filing for Chapter 7 bankruptcy, it is possible you might also be able to do Chapter 13 too, simply for your mortgage. Sometimes, the best course of action may be to simply re-file your case as a Chapter 13 bankruptcy. Talk to your lawyer to determine if this is true in your case.
As you can see, you don’t need to surrender to bankruptcy. By following the tips presented here, you can avoid filing for personal bankruptcy. Use the information you have learned here, and see how you can revamp your finances and protect your valuable credit history.