A lot of people are in debt right now. They are hounded by creditors and collection agencies, and their bills show no sign of slowing down. If this is your story, then personal bankruptcy may be for you. To learn more about the process and what it means for you, check out the information provided below.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
If you are considering filing for bankruptcy you definitely need to hire an attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. A qualified bankruptcy attorney can guide you through the filing process.
Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Seeking out different attorneys is all part of the process until you find someone that you can trust.
It is important to understand your rights when you file for bankruptcy. Occasionally, debt collectors will attempt to convince you that your debt isn’t eligible for bankruptcy. There are few debts that can’t be discharged. If a collector tells you your debt won’t be discharged in your bankruptcy and you know that it will, report the collector to the attorney general’s office in your state.
Bankruptcy can be overwhelming to most people, and can be quite stressful. Engage a competent lawyer in order to avoid excess stress and keep everything on track. Don’t skimp when hiring a good lawyer. The cheapest attorney may not be the best, but the most expensive may not be the best either. 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.
Make a comprehensive list of all of your financial information before you file for bankruptcy. Omissions or errors may cause your case to take more time to resolve, or even be rejected entirely. No sum is too small to be included; err on the side of caution and include everything. Financial information should include all income, assets and loans.
Do not get sizable cash advances from credit cards before filing for bankruptcy because you think the debt from the cards will be erased., This could be considered as fraud, and you may even be forced in paying all of it back to credit card companies.
Before you file for bankruptcy, be sure you know how to properly repay your debts. The bankruptcy code stipulates that you cannot make certain payments to creditors or family for specified periods of time before filing. Do your research rather than making financial decisions blindly.
Lots of individuals who previously filed bankruptcy vow to shun the use of credit cards or lines of credit in the future. Using credit helps you build up your credit again. Avoiding credit altogether prevents you from rebuilding your credit standing, and will therefore serve as an obstacle when you wish to finance a house or a vehicle. Start with one credit card to get your credit going in the right direction.
You don’t necessarily have to forfeit all your assets when you file for bankruptcy. When you file for bankruptcy, you are allowed to keep personal property. This includes some jewelry, clothing, household furnishing, electronics and more. This will all depend on the type of bankruptcy you choose, your finances, and your state’s laws, but you could hold onto your large assets like the car and the family home.
As you can now see, there is much information available that can help you through your bankruptcy. If you deal with your stress in a positive way and make level-headed decisions, your bankruptcy filing will be a step in the right direction for a renewed financial future.