Personal bankruptcy–the process can be complex and confusing. There is more than one type of personal bankruptcy, and your personal financial situation will dictate which type you should choose. It’s imperative that you learn everything you can about the process before you even think about filing. The below advice can assist you in beginning.
Learn as much as you can about bankruptcy by going to informational websites. Many sites, including the U.S. Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. Alternatives do exist, including consumer credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. You must avoid the temptation to conceal any valuables, money or other assets from the courts. If they find that you have lied, you may be faced with fines, penalties or the inability to file in the future.
You may still have trouble receiving any unsecured credit after a bankruptcy. If you find that to be the situation, consider requesting secured cards. This will be a demonstration of the seriousness with which you view rebuilding your credit rating. After a certain time, you will then be able to acquire credit cards that are unsecured.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The Bankruptcy Code provides a list of all the different kinds of assets that you can exclude. Be sure that you study this list. Make yourself aware of any assets you have that could be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
If bankruptcy is an option for you, secure the services of an attorney. There are a lot of things to do during bankruptcy and that may be hard for you to understand on your own. A qualified bankruptcy attorney can guide you through the filing process.
Be sure you have no other choice but to seek bankruptcy. Many times a consolidation loan will ease your financial struggles. Bankruptcy is a long process that can be stressful. It will have a major effect on your credit as time goes on. Because of this, you need to think of bankruptcy as a nuclear option; that is, a last resort.
If your income exceeds your obligations, you should not seek bankruptcy protection. Remember that the record of your personal bankruptcy filing will be discernible on the report of your credit for as many as 10 years. For this reason, bankruptcy filing should not be taken lightly.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. This is a lot harder. You will need to secure the trustee’s approval for any new debt obligation. Create a budget and prove you can afford a new loan payment. You will also need to have a good reason why you need the item.
If you are filing for bankruptcy, it is imperative that you have a good understanding of your rights. It is not unusual for creditors to claim that their debt is not able to be discharged. Most states allow for the majority of debt to be included on a bankruptcy. Should you face a creditor like this, and you are informed that the debt is not valid under the bankruptcy. These types of infractions should be reported.
Be sure you’re acting when the time is right. When it comes to filing for personal bankruptcy, timing is vital. While there are times that it is ideal to file soon, there are other times in which you should wait. Speak to a bankruptcy lawyer to determine what the ideal timing is for your personal situation.
It does not take much experience with bankruptcy to understand that the entire process can be extremely stressful. In order to keep things together and protect yourself from excess stress, be sure to hire a competent attorney. Do not hire based on cost. Your attorney does not need to cost a lot, but they do need to have a lot of experience. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. You might even go to a bankruptcy hearing to watch how a lawyer presents his case.
Obviously you see the necessity for proper planning and decision-making in before you file. Should you determine that it is a wise move considering your personal circumstances, you need to consult with a lawyer who has handled many other bankruptcy cases.