Just thinking about bankruptcy can frighten people. Growing debt loads combined with continuous family obligations can cause an incredible financial strain. If you are in a situation that may require a bankruptcy filing, don’t let fear overcome you. Read this article and learn valuable tips and advice to make this scary situation much more manageable.
It is simple math; when you owe more than you are able to pay off, a bankruptcy is the likely solution. If this is the case for you, you should begin to investigate the legislation in your state. Different states have different laws regarding bankruptcy. You may find your home is safeguarded in one state, while in another it isn’t. Become acquainted with local bankruptcy laws before filing.
Before you proceed with your personal bankruptcy case, review your decisions to be certain that the choice you are making is the right. Look into credit counseling to see if it could help you work out of your debt without bankruptcy. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. It is vital that you disclose all information about your assets and income so there are no delays or penalties, such as a court barring you from filing again later in the future.
You might find it difficult to obtain an unsecured credit card or line after emerging from bankruptcy. Since it is important that you work to rebuild your credit, you should instead think about applying for a secured card. This demonstrates to creditors that you are making a good faith effort to repair your credit. After some time passes they may be willing to offer you unsecured credit.
Don’t try to hide anything if you are filing for bankruptcy, as this will hurt you in the long run. Whoever provides your legal consultation must be privy to all of your financial information. Keeping secrets or trying to outsmart everyone is not a wise move.
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. Don’t hire an attorney who fails to address all your concerns and questions. There is no need to offer an immediate hire, so take your time. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Educate yourself about state bankruptcy laws and possible outcomes before filing your petition. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. Your state’s legislative offices or website will have up-to-date information about these changes.
It is wise to meet with several lawyers before making a final decision, take advantage of the free consultations to find one that is a good fit for you. Meet with the actual lawyer, not a paralegal or assistant, as they’re not allowed to give out legal advice. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Find out more about Chapter 13. If you are receiving money on a regular basis and your unsecured debt is under $250,000, you may be able to file Chapter 13 bankruptcy. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. Generally, this stays in effect for up to 5 years. Afterwards, your unsecured debts clear from your accounts. Keep in mind that missed payments will trigger dismissal of your case.
Those who fear bankruptcy have a good reason to do so: It can be a downright scary experience! Though the fear may be great, you can alleviate some of that with this article. Apply this advice to improve your situation for yourself and any loves ones.