Mention of the word, “bankruptcy” is enough to terrify many. The thought of losing their homes and cars and being overcome by debt is something they rightfully fear. If you have any fear or apprehension about bankruptcy, the advice found in this article will be of help to you.
If filing bankruptcy is in your future, don’t waste any savings you may have attempting to pay off your debts. Don’t touch retirement accounts unless you don’t have a choice. Of course you will have to touch some of your savings to get through all of the hearings, but do not put out any money that you do not have to by law.
Make sure you keep reminding your attorney about any important details in your case. Do not assume that if you’ve already told him or her something important once, that they will remember it later without a reminder. This is your bankruptcy and your future, so never be nervous about speaking your mind.
Instead of getting your lawyer from the yellow pages or on the Internet, try your hardest to find one with a personal recommendation. There are lawyers out there who will take advantage of your financial state and not deal honestly with you. Make sure your filing process goes as well as possible by finding a trustworthy lawyer.
It is important to understand your rights when filing bankruptcy. Many times you can get repossess property back once bankruptcy has been filed. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
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. Choose to file only if your lawyer has convinced you that this is the best decision. It is not necessary to make a final decision right away. Take your time, and schedule consultations with more than one lawyer.
Since the majority of attorneys are willing to provide no-cost initial consultations, it is smart to meet with more than one before you make a selection. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Make sure your home is safe. Filing for bankruptcy does not guarantee that you will lose your house. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
Investigate other alternatives before resorting to bankruptcy. Talk with a bankruptcy lawyer and ask about alternatives, such as debt consolidation or negotiating with creditors. Loan modification plans can help if you are dealing with foreclosure. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. Creditors would rather be repaid, however slowly, than have you declare bankruptcy.
Take into consideration all the ramifications of a Chapter 7 bankruptcy. Filing for this can impact any co-debtors, such as friends or family. Speak to an attorney or read the bankruptcy laws in your state to find out if certain loans can be excluded from your filing. However, the creditors could come after your co-signer and demand full payment for the debt.
During a Chapter 13 bankruptcy, you may still be able to get a mortgage or car loan. It is just tougher. Your trustee must approve any new loans such as this. Present a planned budget that shows how you can take on the loan payment and stay current. The odds are also good that you will be asked exactly why you’re purchasing a new item. Make sure you have a good reason.
File when the time is right. Filing at the right time can make things go much more smoothly. Sometimes, filing as soon as you can is best, while other times, it is wise to get past the worst problems first. Speak with an attorney who specializes in bankruptcy to figure when is the best time to file, according to your situation.
Filing for bankruptcy is hard on anyone, and can cause extreme amounts of stress. To relieve yourself of some stress and keep thing organized, hire a good lawyer. Do not solely use cost to determine whom to hire. Your lawyer does not necessarily have to be the most expensive one; however, you should be certain of his or her qualifications and abilities. Rely on word-of-mouth referrals from others who have filed for bankruptcy, check the BBB, and take advantage of free consultation offers. Often, watching a bankruptcy proceeding can give you clues to the quality of a lawyer.
People who are afraid of bankruptcy have good cause to be; the process can be scary and stressful. If you understand all of the ins and outs of personal bankruptcy, you need not fear it. Use the personal bankruptcy information here as you work your way through your financial situation and make your life situation better for you and your family.