If your debt has driven you to the brink of bankruptcy and you don’t know what to do, stop worrying. The Internet gives you access to everything you need to know about bankruptcy before you make your decision. If you are ready to consider alternatives to a bankruptcy filing, the advice presented here may help.
If you suspect that bankruptcy filing may be a reality, don’t try to discharge all your debt in advance by emptying your retirement or saving accounts. Retirement accounts should never be accessed unless all other options have been exhausted. You may need to tap your savings, but don’t empty your savings account, as this could leave you in a difficult situation down the road.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. It is vital that you know the things on this list prior to filing for bankruptcy, in order to determine which of your possessions will be taken away. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
If you aren’t totally honest about your assets when filing a bankruptcy petition, you could get into serious trouble. Whomever you use to file with must know everything there is to know about your finances, both good and bad. Don’t hold back information and create a strategy so you can deal with what’s really happening.
You should never give up. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If your personal property was repossessed within 90 days before your bankruptcy filing, you may have a chance of getting it back. Get help from your lawyer to file a petition so you can get your items back.
Don’t pay for an attorney consultation and ask him or her anything you want to know. Most attorneys offer free consultations, so meet with a number of them before you retain one. Don’t choose a lawyer until your questions about bankruptcy are sufficiently answered. Take your time choosing the right attorney to assist in your bankruptcy. So you have sufficient time to speak with a number of lawyers.
Familiarize yourself with the bankruptcy code before you file. Laws are subject to change, and it’s important that you’re educating yourself about current code only. All of these changes will be addressed on the state’s legislative site. You can also contact them directly by phone or office visit.
Before filing for bankruptcy, determine whether Chapter 13 or Chapter 7 is appropriate for your financial situation. If Chapter 7 is what you file, your debts will get eliminated entirely. This type of bankruptcy ends any relationship you might have with creditors. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Consider Chapter 13 bankruptcy for your filing. You are eligible to file Chapter 13 bankruptcy if your income is reliable and your unsecured debt does not exceed $250,000. You can secure your home under Chapter 13 and pay your debts with a payment plan. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. 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.
Reconsider your thoughts on filing for bankruptcy, there still is hope. As with anything, the more you know about this subject, the better off you’ll be. Doing so can help you avoid bankruptcy. Get your plan together today, and start working towards a better financial future.