When you decide to file for personal bankruptcy, it is a very serious decision that should not be entered into lightly. Keep reading the ideas in the piece that follows in order to understand what you can expect and what ought to go into making such a major decision. Take the time to educate yourself before you make your choice.
It is important to remind your lawyer of any details that may be important to your case. You cannot expect your lawyer to remember every important detail without some reminder from you. It’s your financial future that is in his hands; don’t hesitate to speak up.
Before you decide to file bankruptcy proceedings, determine which assets will be safe. The Bankruptcy Code lists assets considered exempt from being affected by bankruptcy. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. If you are not aware of the rules, you could be setting yourself up for a lot of stress when your most important possessions are taken in the bankruptcy.
There is hope! Many times you can get repossess property back once bankruptcy has been filed. If the property you own has been repossessed under 90 days before the bankruptcy filing, you may still be able to get it back. Talk with an attorney who can guide you through the process of filing a petition.
See if there is an alternative you can use before declaring bankruptcy. One example would be that a consumer credit program for counseling if you have small debts. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Most bankruptcy lawyers offer a free consultation, so meet with several before you decide on one. Ask to speak with the licensed attorney and not a representative, who can not offer legitimate legal counsel. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Be certain that bankruptcy truly is your best option. Sometimes consolidating your existing debts can make them more manageable. Filing a claim can take a long time and cause much stress. It will also limit your ability to get credit for the next few years. Therefore, you must make sure that there is no other option that you could take before you file for bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy might be a good option, so don’t overlook it. In most states, Chapter 13 bankruptcy law stipulates that you must have under $250,000 of unsecured debt and a steady income. Filing for this type of debt will ensure that you can hold onto your real estate and personal property, and will let you develop a consolidation plan to pay off your debts. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Remember that missing a payment to the plan will result in your case being dismissed.
If you decide to file for bankruptcy, it’s important that you’re educated about your rights. Do not take debt collectors at their word when they tell you that a specific debt can’t be discharged through bankruptcy. Only a few debts are immune to bankruptcy. Taxes, student loans and child support would be the major ones. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
If you are forced to file for bankruptcy, you should avoid being ashamed of yourself. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. These feelings can cause you to make rash decisions and cause psychological problems. To best deal with filing for bankruptcy, look for the positives in the situation.
You should know by now that bankruptcy does not just pop up out of nowhere. By going through the process correctly, the outcome will be further in your favor than it might otherwise have been. If you apply the tips above, it is possible to be certain that your case is handled cleanly and thoroughly.