Bankruptcy is a complex process. Because of the various types of claims out there, and also the different ways in which you can approach filing, your particular situation will be personal to you. It is important to learn about personal bankruptcy before you make the decision to file. This article will help you learn more about personal bankruptcy.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
If you are considering filing for bankruptcy you definitely need to hire an attorney. Personal bankruptcy is quite complex, and it is entirely possible that you will not be able to familiarize yourself with all the laws and processes. An attorney specializing in personal bankruptcies can assist and make certain things are being handled correctly.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. For example, consumer credit counseling services can often help you figure out a workable repayment plan with creditors. You may have the ability to negotiate much lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Talk to the lawyer and not his assistant, who may not be legally able to help you. Shopping around for a lawyer can help you find someone with whom you feel comfortable.
Do what you can to keep your home. There are many options available to help protect you from losing your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may end up keeping it. There are other options such as a homestead exemption which offers you a chance to remain in your home, depending on whether or not you meed certain financial conditions.
Make sure you know how to differentiate between Chapter 13 and Chapter 7. Take the time to learn about them extensively, and then figure out which one will be best for your particular situation. If you are confused by what you find, be sure to ask your attorney to explain anything that is unclear before you make your decision about filing.
Family Members
Do not forget to make quality time for friends and family members. Filing for bankruptcy is a difficult process. It can take a long time, take a great emotional toll and cause people to feel embarrassed and defeated. It is not uncommon for a person to feel the need to pull away from loved ones during the process. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. Therefore, meet this challenge head on and surround yourself with caring family members so you can get through this difficult financial situation.
Don’t file for bankruptcy without knowing your rights. There are bill collectors who will claim that you cannot add your debts to your bankruptcy case. Only a few kinds of debt, like student loans or child support, are ineligible for bankruptcy. If you are told by a debt collector that your debts are not dischargeable, make a record of your conversation and report the individual to the proper state authorities.
There are a lot of things to consider prior to filing for bankruptcy. Think about credit counseling, for example. There are a number of companies that will assist you, many of which are non-profit. They can work with both you and your creditors to find a feasible way in which your debts can be paid off. Your payments are made to the organization and they repay the creditors.
List any debt you have. You need to gather every debt you know you have, because this list is the starting point for a bankruptcy filing. Go over all your financial records and do not forget anything. Don’t hurry through this task; the information needs to be correct for you to receive a discharge.
Bankruptcy is not a decision to be taken lightly. 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.
