Most people never expect to be in the position of facing bankruptcy. In some situations, this is the only choice, and learning about the process is crucial. The information presented here will help you when the sort of circumstances present themselves.
If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. Don’t touch retirement accounts unless you don’t have a choice. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Be well prepared for bankruptcy by reviewing this list. It will tell you whether are not the things you value most are subject to seizure. If you don’t read it, you could have nasty surprises pop up later due to your prized possessions being seized.
You must be entirely candid when it comes to declaring assets and obligations in your bankruptcy petition. Regardless of the agency you file with, ensure that you tell them all they should know about your current financial situation, regardless of how good or bad it is. Being honest is both the right thing to do and, moreover, it is required by law.
No matter what, don’t give up! Certain property cannot be repossessed while you are in the process of filing for bankruptcy so be sure to learn about the laws in your state. Filing for bankruptcy may allow you to regain ownership of recently repossessed property. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. You can meet with a few lawyers before deciding on one. Most lawyers provide a free initial consultation. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs After the consultation, you are not immediately required to come up with a decision. This will give you extra time to interview several attorneys.
If bankruptcy is an option for you, secure the services of an attorney. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
Protect your home. Just because you’re going bankrupt doesn’t mean that you also have to be homeless! 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. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. By researching each type, you can begin to understand which method is right for you. Do not hesitate to have your lawyer explain any details that seem difficult to grasp. This will help ensure you make the right choice when filing.
Determine if bankruptcy is necessary. Maybe you can just consolidate debt to make it simpler to deal with. The whole process of filing for bankruptcy can be a long, and hard one. Your future credit will be affected by these actions. This is why you must make sure bankruptcy is your last resort.
Research Chapter 13 bankruptcy, and see if it might be right for you. If you have less than a quarter of a million dollars in debt that is unsecured and a regular income, you are eligible to file a Chapter 13. The benefit of this plan is that you retain personal belongings and private real estate and your debts are repaid by an organized payment plan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Keep in mind that missed payments will trigger dismissal of your case.
You should understand that you need to speak with a bankruptcy attorney about what you should and should not do when it comes to bankruptcy. The more you know, the easier everything is going to be. This article has given a lot of information, so you can feel less stressed about the situation.