Although some people think filing for bankruptcy is only for losers, they are quick to dismiss the idea when they are faced with it. Changing circumstances, like losing a job or divorce, can create a situation where claiming personal bankruptcy is the only choice possible. This article contains advice to help you if you are considering bankruptcy.
If you are feeling like you are seriously going to have to file for bankruptcy then do not clear out your savings. You should never touch your retirement accounts, unless you have absolutely no choice. Though you may need to use a bit of your savings, try hard to maintain some of your reserves so that you have some degree of flexibility going forward.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. There are lots of unsavory companies and lawyers out there who prey on people who are in desperate straits. It is up to you to find someone that is trustworthy and can make the process go smoothly.
Be honest when filing for bankruptcy, because hiding liabilities or assets can only cause trouble to you. Your bankruptcy lawyer has to know every detail of your finances, whether bad or good. Being honest is both the right thing to do and, moreover, it is required by law.
Before pulling the trigger on bankruptcy, be sure that other solutions aren’t more appropriate for your case. One example would be that a consumer credit program for counseling if you have small debts. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Be sure you know how Chapter 7 and Chapter 13 differ. In Chapter 7 most of your outstanding accounts will essentially be erased. Your former ties with creditors will cease to exist. But, with Chapter 13, you will be in repayment plan for about 5 years prior to any debts you have being totally dissolved. It’s crucial that you know the differences between all of the various kinds of bankruptcies so that you may choose the best option for your situation.
Safeguard your home. Filing bankruptcy does not necessarily mean that you will lose your house. 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 can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Do some research about these options so you can choose the best one. Once you have done your own research, be sure to review your findings with your lawyer, who is the expert. This way, you can be sure of making a well informed choice.
If your earnings are higher than your expenses then filing for bankruptcy is a waste of time and money. 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.
There are circumstances where you are able to keep your car during a bankruptcy so be sure to ask your lawyer about possibly reducing the payments. In many cases, you can reduce your payment by filing a Chapter 7 petition. If you meet the criteria specific to your state, it may be a good option to consider.
Make sure you are acting at the appropriate time. Timing is important, and that is especially true when filing for bankruptcy. In some cases, you should file for bankruptcy right away, but in others, there may be reasons why filing quickly would be a bad idea. Speak with a lawyer specializing in bankruptcy in order to learn when you should file your petition.
Adopt a positive attitude toward filing for bankruptcy and researching the topic. Yes, it is hard to admit that you need help; however, the longer you wait the deeper in debt you get. Going to a lawyer as soon as you can is the best to remain in control of your situation.
Compile a list of the money your currently owe. This will be the basis for your bankruptcy filing, so make sure you include all the debts you are aware of. Be sure to verify the exact amount of each debt you owe by checking paperwork or calling your creditors. Don’t speed through this step; to get the correct sums discharged, it behooves you to get the amounts correct.
It’s a good idea to contact the three major credit bureaus and get fresh copies of the credit reports they have on you once your bankruptcy is a few months behind you. Scrutinize the information, and make sure all debts that should be discharged are and that all of your previous credit accounts are closed. Question and clear up problems and discrepancies immediately, so that your credit record can start improving quickly.
Be certain to create a list that displays all the debts you want discharged when you file. If you do not document certain debts, they aren’t going to be on the discharge. It is up to you to ensure your debts are written down so you don’t need to pay bills that might have been discharged.
If you have attempted every option open to you to bring your finances under control, but have been unsuccessful, bankruptcy may be the final option. No matter how you arrived at this place, there is help available to reduce the stress you are under. You can find the information that you need in the article below.