Everyone is suffering from the bad economy. A lot of people with no jobs find themselves in debt. Too much debt can lead to bankruptcy and all of its ill effects. If you would like to know how to get yourself or your friend out of filing for bankruptcy, read on for some possible answers.
If possible obtain a personal recommendation for a bankruptcy lawyer instead of randomly choosing one. 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.
Do not attempt to conceal any assets when filing for bankruptcy because you may be penalized when they are discovered. Whomever you plan to use should know a lot about the finances that you have, both the good and the bad. Don’t withhold information, and create a smart way of coping with the reality of the situation.
If you are about to file for bankruptcy, then make sure you hire a lawyer. Bankruptcy can be highly confusing and stressful, and you need an unbiased partner who can help simplify the process. A qualified bankruptcy attorney can guide you through the filing process.
Chapter 7 Bankruptcy
Make sure that you understand the difference between Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. Your former ties with creditors will cease to exist. With a chapter 13 bankruptcy, a 60 month period of time will be established in which you will repay the as much of your debt as possible. Following the 60 month period of time, the remainder of your debt will be excused. When choosing the type of personal bankruptcy that is correct for you, it is very important that you know the differences.
Protect your home. Filing for bankruptcy doesn’t automatically involve losing your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. Research them online to see the positive and negative aspects of each one. If something doesn’t make sense to you, go over it with your lawyer prior to choosing which one to file.
Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. If you forget to add these, your petition could be delayed or dismissed. It does not matter what you think of your financial situation, put the sum amount either way. That may include secondary jobs, any cars or trucks you want to be considered assets and any current loans.
Research the rules and regulations of personal bankruptcy before you file. There are many pitfalls when it comes to the code pertaining to personal bankruptcy that can lead to a lot of unwanted issues. Not only could your case be dismissed, but it may also affect your ability to refile. Spend some time learning about personal bankruptcy. This will make the process go as smoothly as possible.
As you are heading towards a bankruptcy filing, don’t be tempted to run up cash advances on your credit cards in the belief they will be erased in the legal proceedings. If you were to do this you could be charged criminally with fraud, because the act is intended to rip off the company.
Take the time to make a complete list of your debts. Once you have an idea of who you owe and how much you owe, you can figure out if bankruptcy is really an option for you or not. Make sure you go through your records and be sure about the exact amounts. Take your time during this process; don’t rush and make sure all of your figures are correct.
Be sure that you include all debts you want discharged in your bankruptcy filing. Any debts you forget to list will not be discharged. You need to ensure that you account for every debt, so you do not miss any that are eligible for being discharged.
If you find a job right before filing your bankruptcy papers, and finally have a steady income, you may still want to file for bankruptcy. Filing for bankruptcy might be the smartest thing for you to do. The timing of your bankruptcy is important. If the bankruptcy filing gets posted before the job begins, this added income will not be taken into account when determining how you will repay the money.
Even as the economy begins to recover, many people are still in difficult financial straits. Although bankruptcy can be avoided in some cases; there are other cases where bankruptcy is the only sensible option. It is our sincere hope that this article has helped you to determine a way to avoid filing for personal bankruptcy yourself, or will help a friend or loved one avoid this fate. Put this advice to work for you starting today.