Filing for personal bankruptcy is a serious decision. Being aware of the complexity of the issues involved in bankruptcy is essential. The advice in this article will get you off to a good start. Whatever tough decisions you must come to face with, research can help you find your way!
A lot of people find themselves needing to file bankruptcy when they are unable to pay their bills. If you’re in this situation, learn about the laws where you live. Bankruptcy laws vary from state to state. In certain states if you file for bankruptcy your home remains protected, but the laws vary depending on where you reside. Be aware of bankruptcy laws before filing your claim.
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Before filing for bankruptcy, hire a qualified attorney. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. A bankruptcy attorney can advise you on how proceed properly.
Before declaring bankruptcy, be sure you’ve weighed other options. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Safeguard your home. Filing for bankruptcy doesn’t automatically involve losing your home. There are mitigating factors, such as lose of value, or multiple mortgages. Check to see if you pass the requirements necessary to file for a homestead exemption.
Chapter 13 Bankruptcy
Consider filing a Chapter 13 bankruptcy. 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. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. The plan is usually for a term of three to five years, and a discharge will be granted at the end of that term. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
Don’t automatically assume that bankruptcy is your only option. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. There are a lot of ways that your lender can assist you, such as reducing interest rates, eliminating late fees, or extending the term of your loan. 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.
Once you clear the hurdle of filing for bankruptcy, live a little, but not too much. Filing is the most intensive step in the process, so afterwards it’s important to let go of some of your stress. That stress can lead to depression, if you don’t take the right steps in fighting it. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
It is important to not wait for the final minute to petition for bankruptcy. A lot of people ignore their financial problems, thinking they are going to go away; that is a big mistake. Being in debt can quickly put you into very deep hole and if you do not rectify the situation fast, you could face wage garnishment or even worse, foreclosure. As soon as you see your debts getting out of control, seek the counsel of a good bankruptcy attorney to see what your options are.
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 will be viewed as fraud, and you may be held responsible for the balances despite your bankruptcy filing.
Produce a comprehensive list of everything you owe. This is going to be the foundation of your filing for bankruptcy, so be certain to include every debt you know about. You want to be as exact as possible about the amounts you owe; examine your records carefully. Don’t speed through this step; to get the correct sums discharged, it behooves you to get the amounts correct.
After reading this article, you will know how to file a claim bankruptcy. Do not let the wealth of information become overwhelming. Take you time to figure out everything and keep these tips in mind. That way, you stand a better chance of making a wise decision.