Whatever leads you to bankruptcy is a sad tale, but that need not mean that’s the only story to tell for the rest of your life. The point of bankruptcy is to have a clean slate and a fresh start. The article you’re about to read contains great information on bankruptcy and how you can proceed with filing a claim.
People generally mostly feel the need to get a bankruptcy filed for when they have more money owed than they can get. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Bankruptcy laws vary from state to state. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. Before filing for personal bankruptcy, be certain that you are familiar with the laws.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Before filling for bankruptcy, determine which assets will be exempted from seizure. The kinds of assets which may be exempted during bankruptcy proceedings are listed in the Bankruptcy Code. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. 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.
You need to educate yourself on the differences between Chapter 7 and Chapter 13. If you file using Chapter 7 bankruptcy, you will get all your debts eliminated. All happenings with creditors will disappear. Chapter 13 bankruptcy allows for a five year repayment plan to eliminate all your debts. You need to determine which type of bankruptcy is right for you given your unique financial situation.
Consider Chapter 13 bankruptcy, if you chose to file. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This allows you to keep possession of your real estate and property and repay your debt through a debt plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Stay mindful that should you for any reason miss even one plan payment, your whole case is going to get thrown out by the court system.
When your income surpasses your bills, you should not be filing bankruptcy. Filing for bankruptcy can really damage your credit in the long run, by staying on your report for up to ten years.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. Many people who undergo this process become way too stressed out. This stress could morph into clinical depression, if you fail to adequately address the problem. You are getting a fresh start, and things will get better.
Do not use the word “shame”, if you go bankrupt. The bankruptcy process can make many people feel ashamed, guilty and unworthy. These are useless emotions, however, and can be harmful to your mental state. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.
Bankruptcy can cause anxiety and a host of other physical and emotional issues. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Get recommendations and look into other qualifications rather than just choosing based on cost alone. There is no need to use an expensive attorney. The important thing that you must do is to get a good attorney. Look to the bureau for better business, consultation, as well as others who have formerly experienced bankruptcy for more information about lawyers. Consider attending a court hearing so you can witness how the lawyer operates.
Make certain that you are fully aware of each and every bankruptcy law prior to even considering filing. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Moreover, a filer is prohibited from spending or incurring extra debt prior to their bankruptcy filing.
When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. It can be difficult to admit you’re in need of help, but your debt will only grow larger if you put off your decision. If you are not sure, gather all of your information and spend a little time speaking with a bankruptcy attorney; their experience can help you make the right decision.
The events that lead someone to declare bankruptcy can cause great emotional distress. Even though that is the case, you should not allow it to depress you in any way. Bankruptcy is not the end. Follow the tips given here in order to make it a new beginning.