Filing for personal bankruptcy is quite a complicated process. There are different kinds of bankruptcy you can file, and the kind you select depends on your individual financial picture and what types of debt you have. Prior to filing, there is a lot you need to know. The following article contains valuable information to help you make that decision.
Visit web sites and read information to learn as much as possible about the topic of personal bankruptcy. The United States DoJ along with other private and nonprofit organizations all have insightful knowledge. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
If you know people who have filed for bankruptcy, ask them who they would recommend rather than relying on Internet reviews or worse, just randomly picking someone out of the phone book. There are various companies that prey on the financially desperate, so you need to find someone you can trust to ensure the process goes smoothly,
There are differences between Chapter 13 bankruptcy and Chapter 7; be sure to familiarize yourself with both. Spend time researching the advantages and disadvantages of filing for each one of these. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Don’t file for bankruptcy if it is not completely necessary. Maybe you can just consolidate debt to make it simpler to deal with. Bankruptcy cases are long, anxiety-filled experiences. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. This is why you must make sure bankruptcy is your last resort.
Chapter 13 Bankruptcy
Consider Chapter 13 bankruptcy, if you chose to file. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. You can keep personal possessions, as well as real estate, while paying into a debt consolidation system. It usually takes three to five years to fulfill this plan. When the time is up, you’re unsecured debts will be discharged. Remember that missing a payment to the plan will result in your case being dismissed.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. When you file under Chapter 7, you will no longer be legally responsible for any debts that were signed by yourself and a co-debtor. But, creditors will ask for the money from your co-debtor.
When you are filing for bankruptcy, make sure you list all of the financial information you may have. If the court thinks you are attempting to conceal information, your petition could be denied. All financial information needs to be considered by the court. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
Long before you file any paperwork dealing with bankruptcy, your first step should be learning the rules and the process. The code governing personal bankruptcy is a complex area that is subject to much misunderstanding. It is even possible to make the sorts of errors that can cause your case to be dismissed. Do as much research as possible about bankruptcy before you file. That way, you will have an easier road.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. This is considered fraud, and even after bankruptcy you can be forced to pay all of that money back to the credit card company.
It is important not to delay the process of determining whether or not you should file for bankruptcy. Yes, it may be hard to admit the need for help, however, if you try to stall from getting help your situation can only worsen. If you talk to a financial professional, they can assess your situation and give you suggestions on what could solve the problem.
Before you decide to file a bankruptcy claim, you need to first come to realization that it’s time to start living a more financially responsible life. It is especially important to refrain from taking on any new debt before filing. Creditors and even judges look at your current and past history when they are going through your bankruptcy paperwork. Having recent good financial behavior, regardless of how short of a time period, is better than no good behavior at all.
If you feel that bankruptcy filing may be right for you, seek some legal advice first from a specialist lawyer. A bankruptcy attorney will advise you of the necessary steps to file bankruptcy as well as represent you in bankruptcy court. They can also help to unravel the complexities of the paperwork and give you any further information you need.
As you now know, bankruptcy is not a decision that should be made lightly. If you feel that bankruptcy best suits your current financial position, then ensure you retain an experienced attorney who can help you.