Bankruptcy is a huge financial decision and should not be lightly considered. Doing your research, partially by reading articles like this one, is an important first step in filing for bankruptcy. Learn everything you can prior to doing anything.
Knowledge is power when you’re considering bankrupcy; there are many websites available to help you. The United States The Department of Justice is just one resource of information available to you. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
After filing for bankruptcy, you may have difficulty getting approved for unsecured credit. If that’s the case, it is beneficial to apply for one or even two secured cards. This will allow you to start building a good credit history while minimizing the bank’s risk. In time, you might be granted unsecured credit again.
Do some research to find out which assets you could lose by filing for personal bankruptcy. The Bankruptcy Code includes a list of the types of assets that are exempt from the bankruptcy process. Make sure that you review this list before you decide to file, to see if you can hang on to your most important possessions. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Do not abandon hope. Once bankruptcy has been filed, you may be able to regain possession of items such as electronic goods or cars that were taken away from you. If your property has been repossessed less than 90 days prior to your bankruptcy filing, there is a good chance you can get it back. Get help from your lawyer to file a petition so you can get your items back.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Be certain to speak with an attorney, not their paralegal or law clerk, since they cannot give legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
Safeguard your home. You do not have to lose your home in the process of a bankruptcy. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. You may also want to check out the homestead exemption because it may allow you to keep your home.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Go to a reputable website and research the benefits and detriments of each type of bankruptcy. If the information you read is unclear to you, take the time to go over the specifics with your lawyer before making a decision on which type you will want to file.
Look into all of your options before you choose to file for bankruptcy. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. Look into loan modification plans if you need to deal with an imminent foreclosure. The lender is able to help you in a number of ways, such as reducing interest rates, eliminating late charges, and even lengthening the loan, giving you more time to pay. Above all else, what creditors want is to get their money. Sometimes they would rather settle for a repayment plan instead of a debtor who is bankrupt.
Because of the comes from bankruptcy, you may feel overwhelmed and stressed. Look for a good attorney who can help you through the process. Do not hire based on cost. While the person you select does not have to cost the most, they should be competent and reliable. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. Try to get a referral from a trusted friend or family member.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. You need to know certain things, like the fact that it’s illegal to transfer any asserts 12 months before filing your claim. Other laws you need to know include debt-based regulations. You cannot increase debt via credit cards prior to filing a claim. Your finances basically have to remain frozen.
Make sure that you disclose every bit of financial information on your bankruptcy petition. Forgetting to add these may cause your petition to be delayed, or even dismissed. Even if it looks insignificant, you must add it to your documents. Don’t forget about side jobs, loans you’ve taken out or vehicles that might count as assets.
Gain all the knowledge of personal bankruptcy that you can. There are many traps in the bankruptcy laws that could trip up your case. It is even possible for your whole petition to be thrown out of court due to errors being made. Thoroughly research bankruptcy before you make the decision to file. This can save you a lot of time and make the entire process easier.
As you’ve read, bankruptcy isn’t as simple as it might sound. There is a long list of items you need to do, and make sure they are done correctly. If you apply this advice, you are certain to be prepared when bankruptcy rears its ugly head.