When in a financial low, you make wonder if bankruptcy is the best choice. Don’t feel bad, you are in good company. A lot of people have thought of bankruptcy as the only choice they had to get rid of their financial troubles. The piece that follows includes useful ideas for ensuring that the bankruptcy process goes as smoothly as possible.
Generally bankruptcy is filed when a person is facing insurmountable debt. If this is the case for you, you should begin to investigate the legislation in your state. Each state has its own laws regarding personal bankruptcy. Your home and other major assets may be protected in your state, while they are vulnerable in other states. You should be aware of local bankruptcy laws before filing.
If a personal recommendation comes your way, this should be a lawyer you focus on. Although you may find a good lawyer through an advertisement, you can simply find a much better lawyer if the lawyer is recommended to you by someone who has gone through the process and who has the inside track on the lawyer’s true capabilities.
When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Lay everything out on the table so that you and your lawyer can devise a plan to get you out of this mess.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Most attorneys offer a free consultation which you should take advantage of. Meet with a few before finalizing your plans. Make a choice only if you have received good answers to all the questions and concerns you brought to the table. You do not need to make a decision immediately after the consult. Take the time to meet with a number of attorneys.
Do some research about laws and legislation before filing. These laws change regularly and you should stay up-to-date so you can make the best decisions. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Do some research to find out more about Chapter 13 and Chapter 7. The Chapter 7 variety can help you eliminate your debts almost entirely. Any ties that you have with creditors will be dissolved. Chapter 13 is different, though. This type of bankruptcy entails an agreement to pay off your debts for five years prior to wiping the slate clean. To make the wisest choice, you will need to understand the consequences of each of these two options.
Don’t file for bankruptcy if it is not completely necessary. You may be able to get away with going through debt consolidation to help make the payments easier to deal with. The whole process of filing for bankruptcy can be a long, and hard one. You should be aware that there are some negative ramifications to it, like extreme damage to your credit score. Before you decide to file for bankruptcy you want to be absolutely certain that it is the only way to resolve your problems.
Find out more about Chapter 13. If your total debt is under $250,000 and you have consistent income, Chapter 13 will be available to you. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. This plan normally lasts from three to five years, in which you’ll be discharged from unsecured debt. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
As was stated earlier, the bankruptcy journey is one shared by many others. Having read this article, you should feel better prepared to navigate this process. Use the above tips to make sure the bankruptcy process goes smoothly.