Many people find themselves feeling unworthy, depressed or frightened when going through bankruptcy. Those who find the need to file often worry about how they will be able to pay debts and live their daily life. As the following article explains, options do exist for those facing financial difficulty.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. When you get into this situation yourself, your first step is to familiarize yourself with your local bankruptcy regulations. Different states have different laws regarding bankruptcy. Some states protect your home, and others do not. Be sure to have some familiarity with the law in your jurisdiction.
Exhaust every other option before making the decision to file for personal bankruptcy. Look into other options, such as consumer credit counseling. Your credit score will be forever effected by bankruptcy, which is why you should do everything else in your power to resolve matters first.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
If a personal recommendation comes your way, this should be a lawyer you focus on. 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.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is important to be aware of this list so you will know what assets are saved. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
You must be absolutely honest when filing for personal bankruptcy. If you try to hide any of your information, it will eventually surface and cause you problems. Good or bad, you must tell your bankruptcy attorney everything about your financial situation. Put everything out on the table and craft a wise plan for handling the situation the best you can.
Don’t file for bankruptcy until your represented by an attorney. It is unlikely that you will be able to comprehend all the various rules and regulations involved in bankruptcy law. A lawyer that specializes in bankruptcy can make sure you are following the correct procedures in your filing.
60 Month Period
Do some research to find out more about Chapter 13 and Chapter 7. Chapter 7 bankruptcy completely wipes out your debt. Your responsibilities to your creditors will be satisfied. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Safeguard your home. Filing for bankruptcy does not mean you have to lose your home. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. You are still going to want to check into homestead exemption either way just in case.
There are two different kinds of personal bankruptcy you can file for: Chapter 7 and Chapter 13. Take the time to find out about each one online, and look at the advantages and disadvantages of each. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Filing for bankruptcy isn’t the end of the world. You may have found yourself being fearful when you began thinking of bankruptcy, but once you get through it, you will find it’s not the end of the world. If you use these tips and ideas, you will be on your way to a better financial future.