Debt has become a problem for many people facing this tough economy. If you are in this situation and do not take take action, things will only get worse as collection agencies try getting their money. Filing for bankruptcy might be the best option for you. Read the following paragraphs to decide if this path is one that you should take.
You should check with the personal bankruptcy resources available online to educate yourself thoroughly before you begin the process. The US Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. The more you know, the better prepared you will be to make the best decisions and ensure that your bankruptcy goes smoothly.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
Don’t throw in the towel. Filing a bankruptcy petition might facilitate the return of your property, including cards, electronics or other items that may have been repossessed. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Speak with a lawyer that will provide you with guidance for the entire thing.
Be aware of recent changes, if any, in the bankruptcy code. It can be tough to keep up with them on your own, and because they change often, a bankruptcy attorney can help you keep track for the sake of your filing process. Review the state legislature web site or contact the state legislature office to keep abreast of changes in the law.
Ensure that you bankruptcy is your best choice. It may be that all you really need to do is consolidate some of your debts. Filling for bankruptcy could be a long and stressful process. It will also harm your ability to secure credit in years to come. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
If you are going to be filing for bankruptcy, think about filing Chapter 13. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. You can secure your home under Chapter 13 and pay your debts with a payment plan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Keep in mind that even missing one payment can be enough for your whole case to get dismissed.
Spend time with loved ones. The process of bankruptcy can prove particularly brutal. It takes time and a lot of people feel stressed and ashamed throughout this procedure. A lot of folks decide to hide themselves from the world around them until the end of the process. Do not isolate yourself or you will put yourself at risk for depression. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
Act at the right time. Timing is important, and that is especially true when filing for bankruptcy. Sometimes you may want to wait to file and in other situations you may find it better to do it as soon as you can. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
When you are going through bankruptcy proceedings, it is sure to cause a great deal of stress. If you want to protect yourself from stress, see to it that you hire a good attorney. Don’t think that the highest priced attorney is the best. Think about quality rather than cost when hiring an attorney. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. You might be able to view a court hearing. You might be able to watch how your prospective attorney handles the case.
As you now know, there is help out there for you if you want to file for bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.