Filing personal bankruptcy is a somewhat complex process. You need to know what type of bankruptcy you should file for based on your current finances and the type of debt you have. It’s imperative that you learn everything you can about the process before you even think about filing. The tips included in this article should give you some direction as you go through the process of deciding to file and filing for personal bankruptcy.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If that is the case, you should try applying for one, or two secured cards. By doing this, you will be letting people know that you want to fix your credit score. If you do well with a secured card and make strides to repair your credit, you will ultimately be able to receive an unsecured card.
If a personal recommendation comes your way, this should be a lawyer you focus on. There are so many dime-a-dozen companies out there who make it a practice of preying on financial desperation. You need to make sure your bankruptcy goes smoothly, so find someone you know you can trust.
Don’t hide assets or liabilities when filing for bankruptcy. Your attorney and trustee should be privy to all information about your finances. Don’t hold anything back and formulate a smart strategy to deal with the reality you are facing.
Find a bankruptcy attorney who offers free consultations, and ask lots of questions. Most attorneys offer free initial consultations, and you should take advantage of the chance to interview multiple practitioners. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. There is no need to feel rushed to decide to file after you talk with your bankruptcy lawyer. So you have sufficient time to speak with a number of lawyers.
When a bankruptcy is imminent, retain a lawyer immediately. With all the ins and outs of bankruptcies, it can be hard to grasp all the knowledge. Talk to a bankruptcy lawyer, they can help clarify anything that you might have confusion with.
Before declaring bankruptcy, be sure you’ve weighed other options. One example would be that a consumer credit program for counseling if you have small debts. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.
Carefully consider filing for bankruptcy on loans that have a co-signer, especially if that co-signer is a business associate, close friend or relative. When filing Chapter 7, you are not longer liable for the debts that you and a co-debtor signed for. However, creditors will want to hold your co-signer responsible completely.
Make sure you act at an appropriate time. Timing is important, and that is especially true when filing for bankruptcy. In some cases, you should file for bankruptcy right away, but in others, there may be reasons why filing quickly would be a bad idea. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
Prior to filing, it is important that you know all about bankruptcy laws. You need to know certain things, like the fact that it’s illegal to transfer any asserts 12 months before filing your claim. Also, you can’t go and max out your credit card just because you are about to file for bankruptcy.
Think before you pay debts after you’ve decided to file. Check the bankruptcy laws in your state to make sure you have not done anything in the past year to make yourself ineligible to petition for bankruptcy. Do not make a decision about filing until you are aware of all the current rules regarding bankruptcy.
You have probably realized that you should carefully evaluate your decision to file for bankruptcy before proceeding. If bankruptcy is sensible option for you, a good and experienced bankruptcy attorney is a must have to help you begin the process of starting your financial situation anew.