Filing bankruptcy is a bit complicated. For example, there are several types of bankruptcies. Each type depends on several factors including your income as well as your debts. Prior to filing your petition, you really need to gain an understanding of how personal bankruptcies work. Check out the tips listed below if you want some solid info on the subject.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. Many sites, including the U.S. Department of Justice and American Bankruptcy Institute are both sites that provide free advice. The more you know about it, the better you are able to make the best decision for your situation and to make sure that the bankruptcy proceedings move forward with minimal setbacks.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Be honest when filing for bankruptcy. Don’t hide liabilities or assets, as they’ll come back and haunt you. It is important that you are completely transparent, showing everything financial that needs to be known. Bankruptcy can be a chance to simplify your finances, but any schemes you employ to conceal the truth can ruin that chance for you.
Before you decide to file bankruptcy, be sure to check for any new laws that may apply to your case. These laws change regularly and you should stay up-to-date so you can make the best decisions. A qualified bankruptcy attorney is the best source for the latest information regarding the laws in your state.
Do what you can to keep your home. Bankruptcy filings don’t necessarily have to end in the loss of your home. You can still keep your home, it just depends on your specific situation and the value of your home. You could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.
Investigate other alternatives before resorting to bankruptcy. Find out if you can receive a reduced interest rate or altered repayment plan instead of bankruptcy filing. If foreclosure looms, think about getting your loan plan modified. The lender may be willing to reduce interest rates, eliminate late charges or extend the life of the loan. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Once your initial filing is complete, it is time to take some time to relax a little. Filing is the most intensive step in the process, so afterwards it’s important to let go of some of your stress. This stress could morph into clinical depression, if you fail to adequately address the problem. Bankruptcy is hard to go through, but you must remember that a less stressful, more enjoyable life is waiting on the other side of it.
Talk with your lawyer about getting lower payments for any car you wish to keep. In many cases, Chapter 7 bankruptcy can lower your payments. There are a few requirements that you have to meet to be eligible, though. You have to have bought the car more than 2.5 years ago, your loan’s interest rate needs to be over a certain amount, and your employment history has to be good.
Don’t wait to file for bankruptcy. Some people will just ignore their outstanding debts, hoping that someone or something will come and save them, but this never ends well. If debts are not dealt with quickly, things can quickly get out of control. Not only will you be faced with late fees and interest, but you may also be faced with a wage garnishment or foreclosure if you ignore your financial woes. Once you are aware that your financial situation is not manageable any more, your best bet is to speak with a bankruptcy attorney and find out what he or she recommends.
Do your homework so you thoroughly understand the laws pertaining to bankruptcy before you file. For instance, you may not be aware that a filer is forbidden from transferring assets from his or her name for one full year before the petition is filed. In addition, it’s unlawful for a filer to acquire more debt on their credit cards before they file.
Lots of people who file for bankruptcy say they will never use credit cards again. This is not wise because you need to rebuild a good credit file. If you never use credit, you won’t be able to rebuild the good credit that you will need to make future purchases. Begin to go down the right path by obtaining a single card.
List each of your debts clearly and efficiently. Only the debts you list on your bankruptcy filing will be discharged, so make sure all of them are included. Be sure to verify the exact amount of each debt you owe by checking paperwork or calling your creditors. Avoid rushing through the bankruptcy paperwork; if you want each debt discharged, you need to make sure the numbers are right.
Clearly, filing for bankruptcy takes a great deal of thought and consideration in advance. If you choose bankruptcy as a financial answer for your situation, you can only benefit from having a lawyer dedicated to this industry to help you out.