There are many people who are now in debt levels over their heads. It seems that they can never pay their bills down, and they’re constantly pursued by collection agencies and creditors. If this sounds like your situation then perhaps filing for bankruptcy may be in the cards for you. To learn more about the process and what it means for you, check out the information provided below.
Avoid exhausting your savings or emptying your retirement accounts to pay off creditors if you are considering filing for bankruptcy. You should never touch your retirement accounts, unless you have absolutely no choice. If you do have to dig into your savings, make sure that you leave enough to sustain you and your family for a couple of months.
Always be honest and forthright when it comes to your bankruptcy petition. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
Research what assets are exempt from seizure before you decide to declare bankruptcy. The Bankruptcy Code lists the kinds of assets which are exempted when it comes to the bankruptcy process. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. It is important to know what types of possessions may be taken away before they actually are seized.
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. The lawyer representing you when you file needs to have full knowledge of your financial situation. Do not hold back anything, and form a sound plan to make peace with your reality.
Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. It is a good idea to consult several attorney before deciding on one. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You don’t need to decide what to do right away. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. If you file for Chapter 7 bankruptcy, all of your debts will be eliminated. The ties with the creditor will be broken. If you choose to file for Chapter 12 bankruptcy, you’ll be put into a 60-month plan for repaying your debts before they’re eliminated. Look into both types of bankruptcy before deciding which one would suit your particular needs.
Talk to a lot of different bankruptcy lawyers; most of them will give you a free consultation. Ensure that you have a meeting with a real lawyer instead of an assistant, since they can provide the best advice. Look for an attorney until you find one you feel comfortable with.
Research Chapter 13 bankruptcy, and see if it might be right for you. If your source of income is regular and your unsecured debt is less than a quarter million, Chapter 13 bankruptcy is something you are able to file for. Chapter 13 bankruptcy permits you to remain the owner of your properties, while allowing you to repay your debt using a debt consolidation loan. That plan lasts approximately three to five years, and then you are discharged from unsecured debt. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. This is a lot harder. You will have to see your trustee and the approval for this new loan. You will need to make a budget and prove that you will be able to afford your new loan payments. You should also be prepared to explain why you need to purchase the item.
When you do file for bankruptcy, make sure you know your rights. Certain unscrupulous creditors will try to convince you that certain debts can’t be discharged in bankruptcy. Only a few kinds of debt, like student loans or child support, 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.
Act when the time is right. Filing at the right time can make things go much more smoothly. There are occasions where it pays to delay and others where a quick decision is the best option. Find out when the correct time is for you to file for bankruptcy from a bankruptcy legal professional.
Once you decide to file, it is important to act in a more financially responsible manner. Avoid running up current debts or taking on new debt just before filing for bankruptcy. Both creditors and judges take a look at what you are doing now, as well as what you have done in the past. You should demonstrate through your current behavior that you are actively changing your personal financial habits.
Produce a comprehensive list of everything you owe. You will need this list when you file, so it is important for it to be as compete as possible. Include your exact balance on each account. Take care not to miss any debts that you need to disclose, or you will be responsible for paying them back after you have filed for bankruptcy.
After reading this article, you now know that there are many options available and possibilities to consider when filing for bankruptcy. If you go into the process armed with knowledge and confidence, you can wipe away your debt and give yourself a fresh start.