No one wants to need to go through the process of filing for bankruptcy. Sometimes things in life happen, but you have to be prepared for what comes your way. If you have questions about what you should do in this situation, continue reading to learn some great advice.
Never lie about anything in your bankruptcy petition. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
It is possible to keep your home. Filing for bankruptcy does not guarantee that you will lose your house. It may be possible to keep your home if the value has depreciated, or there is a second mortgage. If you’re not sure, however, you can always study the particular homestead exemption regulations. You will learn everything you need to know.
Bankruptcy can be a good time to spend time with people you love. Filing for bankruptcy is a difficult process. It’s generally stressful, lengthy and can make people feel guilty, ashamed, and unworthy. A lot of folks decide to hide themselves from the world around them until the end of the process. However, self imposed isolation will only make you feel even worse about the process and could even lead to depression. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
Look into all of your options before you choose to file for bankruptcy. There are many other options including debt consolidation and making payment plans with your creditors. Loan modification can help you get out of foreclosure. Some lenders will make concessions rather than losing the money owed to bankruptcy. These concessions include waiving late fees, lowering interest rates, and changing the loan term. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
If concerned about keeping possessions like a car, find out if your attorney can reduce the payment. Most of the time Chapter 7 bankruptcy will allow your payments to be lowered. There are qualifications, such as the loan being high interest and a good work record for this option.
Don’t drag your feet figuring out if bankruptcy is the right thing to do. While it may be difficult to accept that you are in trouble, waiting only prolongs the agony. A qualified bankruptcy lawyer can give you advice about filing for bankruptcy and help you weigh other options.
You do not lose everything that you own when you decide to declare bankruptcy. You can keep personal property. This may be things like jewelry, clothing, furniture and electronics. Your current state’s laws, deciding between Chapter 7 or 13, and your current financial position will determine just how much you get to keep.
If you get a second job, there is no reason to put off your bankruptcy. Filing for bankruptcy might be the smartest thing for you to do. When you decide to file could really make a huge difference. Post your filing before you begin earning money at your new job. In this way, your repayment means will be determined using your income prior to your new employment.
In the event your bankruptcy case gets dismissed due to your own error, it is possible to re-file. But, generally speaking, the automatic stay will apply for 30 days only if you have already received a prior dismissal. It is possible to get the stay extended, if there is a good reason for the error and refiling.
Check to make sure all the information in your bankruptcy paperwork is accurate. The attorney will fill out the paperwork, but ultimately it is up to you to make sure that the information is accurate. Bear in mind that a lawyer deals with many cases and there is always a chance of a screw up. This is why it’s vitally important for you to personally double-check the information that goes onto your bankruptcy paperwork.
Do not assume that all your debts will be automatically dismissed as you file for bankruptcy using chapter 7 bankruptcy. Debts that are secured will still need to be repaid but you should be able to negotiate new terms, and not all debts can be eliminated by this filing. Here are some of the debts that cannot be discharged under Chapter seven: alimony payments, child support payments and court-sanctioned fines.
Once you determine that claiming personal bankruptcy is something that you must do, you will need all the advice that you can get. The process will be much simpler if you are well-informed. Much of the information you need was provided to you in the article above.