No one ever thinks that they will go through a bankruptcy. Sometimes it’s the only way out of a nasty financial mess. If you are approaching a bankruptcy situation, reviewing the advice presented below may help you understand what happens next.
Before undertaking the bankruptcy process, ensure you have made the correct decision. Look into other options, such as consumer credit counseling. Bankruptcy permanently affects your credit, so avoid filing until you have exhausted all of your other options.
Always be honest and forthright when it comes to your bankruptcy petition. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. Bankruptcy is a complex process, and you probably don’t know all the information that is required to navigate it. A specialized bankruptcy lawyer can ensure that you are handling your bankruptcy filing the right way.
Be aware of recent changes, if any, in the bankruptcy code. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. To find out about these changes, you can look at your state’s legislation website or contact their office.
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. In Chapter 7 most of your outstanding accounts will essentially be erased. Your responsibilities to your creditors will be satisfied. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. You have to know what differs between all of the kind of bankruptcy, so you know which is one is ideal for you.
Never forget that you still deserve to enjoy life while you go through the bankruptcy process. It can be several months between the initial filing and the final discharge of debts. Stress easily leads to depression, if you are not maintaining control of your emotions. Life will get better; you just need to make it through the bankruptcy process.
Speak with your attorney about ways you can keep your car. Sometimes, as part of the bankruptcy filing, your auto loan can be restructured so that you pay less each month. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
Understand the rights you have as a bankruptcy filer. It is not unusual for creditors to claim that their debt is not able to be discharged. Only a few debts, including child support and tax liens, are ineligible for bankruptcy. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
Review bankruptcy rules before you file your petition. There are many issues with personal bankruptcy code, and these pitfalls can cause problems with your case. It is even possible for your whole petition to be thrown out of court due to errors being made. Make sure you check into your case and see that you have the paperwork filled out correctly. Doing this can make the process simpler.
Even if your situation seems bleak, do not lie about anything when you file for bankruptcy. One very important point is to never lie or withhold details regarding your personal assets and debts. It is against the law. If you fail to declare certain assets or debts, you may be held criminally liable for the omission if it was found to be intentional.
Look over your debts before filing for bankruptcy to make sure they will clear your credit report, as you would not want to file unnecessarily. Some debts, like student loans and past-due child support, cannot be discharged with bankruptcy. This kind of debt is best tackled through a loan consolidation company or an agency that specializes in credit repair.
If a mistake causes your case to be dismissed, you may re-file. Yet in most cases, the automatic stay is only for about a month. It is possible to extend the stay, provided you can show just cause for the error and need for re-filing.
If you file for a Chapter 7 type of bankruptcy, not all debts magically disappear so don’t have an expectation that they will. Some secured debts may need to be reaffirmed, which means you have to draft a new agreement for repaying them, and some debts aren’t dischargeable under most circumstances. You cannot get child support, court sanctioned fines and alimony payments dismissed through Chapter 7.
Once you make the decision to file bankruptcy, you need to start learning about it. Adding to your fund of bankruptcy knowledge helps to make the whole process easier. The article you just read have you some of this advice, meaning you can deal with your situation much better.