Is your debt piling up to the point that a bankruptcy seems like the only option? Do not worry, because you are not the only one. Many people have been in the same situation as you. The piece that follows includes useful ideas for ensuring that the bankruptcy process goes as smoothly as possible.
You can find a wealth of information concerning personal bankruptcy by searching for websites which offer information about it. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
Try to make certain you are making the right choice prior to filing your petition. It is possible to take advantage of other options, like consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
It is important to list all your assets and liabilities during the bankruptcy proceeding. Failure to do so will only cause you problems in the end. It is necessary to be open regarding both the positive and negative aspects of your financial life. Keeping secrets or trying to outsmart everyone is not a wise move.
No matter what, don’t give up! You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Consult with a lawyer who is able to assist you in the filing of your petition.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. Nearly all attorneys offer free initial consultations, so you should be able to meet with a few before you make a final hiring decision. Make your decision after all of your questions have been answered. You do not have to give them your decision right after the consultation. You could even go to different lawyers for advice.
You can take steps to hang onto your house. You do not have to lose your home in the process of a bankruptcy. Depending on certain conditions, you may very well end up being able to keep your home. There are also homestead exemptions which, depending on your other finances, may allow to remain in your home.
Consider filing using chapter 13 bankruptcy. If you owe an amount under $250,000 and have a consistent income source, Chapter 13 may be right for you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Remember that if you even miss one payment that’s due under this plan, the court could dismiss the whole case.
Before declaring bankruptcy, see if there’s anything less drastic you can do to repair your credit. Consult with a bankruptcy attorney to see if an interest rate reduction or debt repayment plan is an alternative to filing for bankruptcy. If you are looking at foreclosure, think about a loan modification program. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
File when the time is perfectly right. Filling for bankruptcy can be a matter of correctly assessing the right time to begin. Sometimes, it is good to file immediately, but sometimes it is smarter to wait until you have passed through the worst of things. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Filing for bankruptcy can cause stress. You need to do your research to find a good bankruptcy lawyer. Make your hiring decision based on several criteria, not just on price. Think about quality rather than cost when hiring an attorney. Rely on word-of-mouth referrals from others who have filed for bankruptcy, check the BBB, and take advantage of free consultation offers. Try to get a referral from a trusted friend or family member.
Do some research about bankruptcy laws before filing for bankruptcy. For instance, you are not allowed to move assets from your name to someone else’s for a year before you file. 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.
Know the rules of personal bankruptcy prior to petitioning. The bankruptcy laws are complex, and things could go badly if even one thing is out of place. Making mistakes can have an effect on the outcome of your case. It is important to learn the bankruptcy code before filing bankruptcy. This can save you a lot of time and make the entire process easier.
As you can see, you are not alone in your need to fix your finances by choosing bankruptcy. Unlike the uninformed masses, however, you took the time to read this article, so you are more informed. Use the tips in this article to ensure that the bankruptcy proceedings go smoothly.