What To Do When You Need To Declare Bankruptcy

Whatever leads you to bankruptcy is a sad tale, but that need not mean that’s the only story to tell for the rest of your life. You will be able to have a fresh start after all is said and done. This article will show you how you can make the best of bankruptcy rather than dwelling on the circumstances that got you there in the first place.

Ensure that you are providing genuine details when filing a bankruptcy petition, because honesty is the best policy when dealing with bankruptcy. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.

Try to find a bankruptcy attorney who is personally recommended, rather than off the Internet, or out of the yellow pages. Don’t be taken in by some fly-by-night company that exists only to profit from the suffering of others. Check out any lawyer you are considering thoroughly before engaging him or her.

Don’t pay for the consultation with a lawyer who practices bankruptcy law; ask a lot of questions. It is a good idea to consult several attorney before deciding on one. The lawyer who properly answers your questions is the one you should hire. After your consultation, take your time to make your decision. So, this gives you plenty of time to consult with several attorneys.

Before declaring bankruptcy, ensure that all other options have been considered. For example, consumer credit counseling programs can help if your debt isn’t too large. Sometimes you can negotiate a reduced payment, though you must strive to get it all in writing.

Chapter 7

Be certain to grasp the distinction between Chapter 7 and Chapter 13 bankruptcy cases. In Chapter 7 most of your outstanding accounts will essentially be erased. Any ties you have concerning creditors will definitely be dissolved. 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.

Always protect your house. Filing for bankruptcy does not mean you have to lose 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 could also check out the homestead exemption. This lets you continue living in your house, depending on whether you meet certain financial requirements.

It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Investigate the benefits and pitfalls of both. Online resources may be able to provide all the information you need. If you’re really not sure how this all works after your research, meet with your lawyer and ask them prior to making a decision.

If you have fears that you will lose your car, ask your lawyer about the possibility of lowering your car payments. Filing under Chapter 7 is usually a good way to lower your payments. The car loan must have been initiated prior to 910 days before your petition. It must carry a loan with high interest. You should also have a steady history of work.

Refrain from feeling shameful about your bankruptcy. Filing for bankruptcy leads people to feel all sorts of emotions like shame, guilt and feeling irresponsible. Although dealing with a bankruptcy is stressful, try to focus on the positive. Keep your mindset positive while you work through financial troubles such as bankruptcy to reduce stress and have an easier time coping.

Going through bankruptcy is tough and can be mentally and emotionally draining. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Don’t let cost be the sole factor in who you hire. The cheapest attorney may not be the best, but the most expensive may not be the best either. Make sure that you verify their reputation through various sources including people in your circle of friends and the BBB. You could even attend a court hearing to see how an attorney handles his case.

Before you even consider filing for bankruptcy, familiarize yourself with the laws surrounding this process. For example, it is forbidden for an individual to transfer any assets away from the name of the filer within the twelve months preceding filing. Not only that, but the filer cannot lawfully accrue additional debt just prior to filing.

Do not take a large cash advance from credit cards prior to filing, knowing that bankruptcy erases all debts. If a creditor notices that activity they can constitute it as fraud and sue to have you pay it all back even after your bankruptcy is complete.

When you have decided that bankruptcy is the right route for you to take, you need to act relatively quickly. It’s hard to admit you need assistance, but the longer you decide to wait, the worse the debt can get. By consulting a professional, you will be able to get the advice that you need before everything gets too complicated.

Credit Cards

Lots of individuals who filed bankruptcy vow to never again use credit cards or lines of credit ever again. This isn’t necessarily a good strategy to follow because good credit is established by getting, and handling, credit responsibly. Without using credit cards or other forms of credit, it is nearly impossible to rebuild your credit worthiness. You can rebuild your credit slowly, beginning with just one credit card.

As stated in the above article, anytime someone is forced into bankruptcy is never a happy situation. But, that does not mean life after bankruptcy has to be negative. Bankruptcy may well represent the point where you turn your life around, and you can handle it better by making use of the suggestions this article has provided.

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