Dealing with bankruptcy is very tough. When you’re constrained financially, your options become limited, in general. Your credit score has been damaged and it can be difficult to get loan approvals. However, although difficult, it is not impossible to secure a loan.
Never shirk on the truth in your petition for bankruptcy. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
Research what assets are exempt from seizure before you decide to declare bankruptcy. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It is crucial to read the list before you file for bankruptcy so you know whether your favorite items will be taken. You wouldn’t want to unexpectedly lose any possessions you treasure.
Do not give up. When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. If you have been subject to a repossession during the 90 days before your filing, you stand a good change of getting your property back. A lawyer will be able to assist you with filing the paperwork to get the items back.
Never pay for a consult with a bankruptcy lawyer, and ask plenty of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Do not make any final decisions until every question you have has been answered. You don’t need to decide what to do right away. You can take your time and check out several attorneys before making your final selection.
Be sure to hire an attorney before you embark upon filing for personal bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. Personal bankruptcy attorneys can help make sure everything is done properly.
Weigh all of your options before declaring bankruptcy. For example, there are credit counseling services that can help you to deal with smaller amounts of debt. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Always protect your house. You don’t have to lose your home just because you are filing for bankruptcy. You might be able to keep your home, contingent on certain factors, such as your home decreasing in value or having a second mortgage. If you meet certain criteria, you may be able to retain ownership of your home even after filing for bankruptcy.
Chapter 13 Bankruptcy
Look into filing Chapter 13 bankruptcy. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. 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.
Do not forget to make quality time for friends and family members. Filing for bankruptcy is a difficult process. Having to declare bankruptcy leaves many people feeling like a failure. There are a number of people who wish to go into seclusion while undergoing the process of personal bankruptcy. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. For this reason, if you are undergoing personal bankruptcy proceedings, you must continue to live a normal life, spending time with your friends and relations.
Before you make the decision to file Chapter 7 personal bankruptcy, take time to think about anyone it could affect. If you choose Chapter 7, you are no longer responsible for joint debts. So, in short, if you file bankruptcy, but they do not, they will be held completely responsible for your joint actions.
Make sure you are acting at the appropriate time. Timing is important, and that is especially true when filing for bankruptcy. There are occasions where it pays to delay and others where a quick decision is the best option. Speak to a bankruptcy lawyer to determine what the ideal timing is for your personal situation.
Whenever you file a petition for bankruptcy, do not leave out any information about your finances or assets. Overlooking any information can result in a delayed or rejected petition. No matter how insignificant a sum seems, include it in the documentation. Include all jobs, assets and loans.
Filing for personal bankruptcy does not mean you are limited in you daily life. Through the saving of money and striving to reestablish your credit, creditors will take this to heart. All you need to do really is start saving your money and rebuild your credit so that you have a chance to get that next loan.