Filing for bankruptcy must not be taken lightly. Go over the advice in the following paragraphs to get an idea of what you’re in for, and to learn what you should know before you decide whether or not to file. Find out all the information you can before filing for bankruptcy.
When you document your financial records, it is vital that you are 100% truthful in order to have a successful resolution to your bankruptcy process. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Safeguard your most valuable asset–your home. Bankruptcy doesn’t always mean you’ll lose your home. Depending on if your home’s value has gone down or if it has a second mortgage, you might be able to keep it. 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.
Think about all your options before pulling the trigger. Instead of rushing into bankruptcy, a good idea is too speak with an attorney who may be able to get your interest rates reduced or help get you on a debt repayment program. If you are about to lose your house, talk to your lender about a loan modification. The lender can help your financial situation by getting interest rates lowered, dropping late charges, and in some cases will allow you to pay the loan over a longer period of time. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
Before you file for bankruptcy, make sure you understand your rights. Bill collectors will lie to you and say you can’t have their bill discharged. What you can’t file on is very small, like student loans or child support payments. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Prior to filing for bankruptcy, tell yourself that you cannot use the word “shame”. Feelings of low self-worth, shame and guilt are common for those who have come to the point where bankruptcy is their only option. These feelings, however, are of no benefit to anyone, and they can be detrimental to your mental health. Staying positive and upbeat is the proper way to deal with bankruptcy.
Bankruptcy is a hard thing to experience and it could create both emotional and mental stress. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Get recommendations and look into other qualifications rather than just choosing based on cost alone. Quality is far more important than expense when it comes to a good bankruptcy attorney. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. You could even attend a court hearing to see how an attorney handles his case.
Be sure you know the bankruptcy laws before you think about filing. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. It is also illegal for someone who files for bankruptcy to drastically increase their debts on credit cards immediately before filing.
Try your hardest to present a complete representation of your current financial situation. Forgetting to add these may cause your petition to be delayed, or even dismissed. No sum is too small to be included; err on the side of caution and include everything. Current loans, second jobs and assets ought to be included.
As this article has demonstrated, you do not have to go through bankruptcy. Several steps must be completed, and completed accurately. If you follow the advice given here, you’ll be able to make sure you have everything in order for when you file bankruptcy.