The circumstances that culminate in a bankruptcy filing are likely unpleasant, though they do not need to define the rest of your life. Once you have completed the bankruptcy process you can begin anew with a clean slate. Completing the bankruptcy process properly can lead to a new financial future.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States Justice Department, the ABI (American Bankruptcy Institute), as well as the NABCA (National Assoc. Consumer Bankruptcy Attorneys) are excellent sources of information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. The lawyer representing you when you file needs to have full knowledge of your financial situation. Never hide anything, and make sure you come up with a well devised plan for dealing with bankruptcy.
If you are going to be filing for bankruptcy, think about filing Chapter 13. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. Filing a Chapter 13 will let you keep personal items and real estate while you pay down your debt in a consolidation plan. This lasts for three to five years and after this, your unsecured debt will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Make sure bankruptcy is truely your only option before filing. You might be able to address your debts by arranging a repayment plan or a reduction in your interest rates. Get professional advice on these matters from a bankruptcy lawyer. If you are facing foreclosure, consider a loan modification plan. The lender wants their money, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
Make sure you are acting at the appropriate time. When it comes to filing for personal bankruptcy, timing is everything. In certain situations, you should file right away, but other situations will warrant you waiting. A lawyer is in the best position to evaluate your case and figure out when you should file for bankruptcy.
Know the rules of personal bankruptcy prior to petitioning. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. If you make an egregious mistake, the judge might even dismiss your case. This is exactly why it’s imperative that you take the time necessary in order to research what you can about bankruptcy. Doing so will pave the way to an easier process.
If you know that you are about to file for bankruptcy, don’t exploit the information asymmetry and get huge cash advances on your credit cards. This is against the law and it is fraud. After the bankruptcy process you can be made to pay it all back to the creditor.
Don’t put off filing for bankruptcy until you are in dire straits. It is absolutely difficult to admit you require help. On the other hand, the longer you delay, the more debt you rack up. By speaking with a professional in a timely manner, you can get good advice before the bankruptcy process gets too difficult.
No matter what’s going on, make sure you tell the truth about your situation. Lying about assets, debt or income can have damaging effects on your future. This not only unethical, it is simply illegal. If you lie in the recording of your debts and assets, you may end up in prison for quite some time.
Some lawyers offer a phone number that you can give creditors when they call you about your delinquent account. All you have to do is give the number for the attorney’s office, which allows them to confirm the validity of your bankruptcy. Then they should not need to call you again.
If, once you file Chapter 7 bankruptcy, it comes to light that you no longer qualify to receive the Homestead Exemption,it may be possible for you to do a Chapter 13 filing on top of your mortgage. Some scenarios will require a conversion from Chapter 7 to Chapter 13, dependent on what your attorney says.
Make sure that your debts are dischargable under bankruptcy. Debts like student loans may stay in your financial history regardless. Try using a loan consolidation service or a type of credit repair agency to reduce debt.
If you are going to get hit hard on your taxes, do not assume that bankruptcy is an out for you. Some filers pay the taxes that they owe with credit cards and then they file for bankruptcy. They think that they can turn a tax debt into an ordinary consumer debt, which is discharageable in bankruptcy. Unfortunately, you’ll just end up having to pay your credit card balance plus interest.
Do not delay in filing your personal bankruptcy case. If there is no other way out of your financial situation, it is pointless to wait. Your financial position may deteriorate even further and make an already stressful situation even less tolerable. This could have a lot of negative effects to your life. It’s better to file sooner rather than later.
The road to personal bankruptcy is a sad and difficult one. Even though that is the case, you should not allow it to depress you in any way. By using the tips from the above article, you can turn bankruptcy into a positive turning point.