Bankruptcy is very common in today’s economic climate. The economy has hit many people from all walks of life hard. However, before selecting this option make sure you know everything you need to know before you head too far down the path. Read on to find insightful tips and information about bankruptcy filing.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. Withholding or lying about certain information can seriously worsen your financial situation. It could lead to being unable to file for bankruptcy or even legal trouble.
Most bankruptcy lawyers give free consultation, so try to meet with these types of lawyers before deciding on hiring one. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Considering several different lawyers can help find someone to trust.
Unsecured Debt
Find out more about Chapter 13. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Missing a payment under these plans can result in total dismissal by the courts.
It is still possible to get a mortgage or car loan, even if you are filing for Chapter 13 bankruptcy. However, it can be more difficult. Your trustee must approve any new loans. Document your budget to prove that you’re going to be able to make the payments. Also, be sure you can provide an explanation as to why this purchase is necessary.
When you do file for bankruptcy, make sure you know your rights. Some debtors will try to tell you your debt with them can not be bankrupted. What you can’t file on is very small, like student loans or child support payments. If you are told differently by a collector, research the information yourself. If you find they are in error, get the name of their company, phone number and any identifying info so you can report it to the attorney general in your area.
Bankruptcy is a difficult time that always leads to lots of stress. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Don’t let cost be the sole factor in who you hire. You don’t have to use the most expensive attorney; you just need a good quality attorney. Ask people who have used a bankruptcy lawyer for referrals, look them up at your local Better Business Bureau, then schedule free consultations in order to interview them. When looking at bankruptcy attorneys, consider sitting in on one of their court hearings to find out how they handle the case.
Before you decide to file, make yourself aware of the laws about bankruptcy. As an example, it is prohibited for someone to transfer assets from the filer’s name for one year prior to filing. In addition, it’s unlawful for a filer to acquire more debt on their credit cards before they file.
Normally, you will not lose your assets when filing bankruptcy. When you file for bankruptcy, you are allowed to keep personal property. You may keep personal items like jewelry, household furnishings, clothes and electronics. This depends on the laws in your state, the bankruptcy type for which you file, and your unique finance situation, but it may be possible to retain your home, car and other large assets.
Choose your personal bankruptcy lawyer wisely. Many newer lawyers enjoy this kind of law. Try to get a lawyer that has a lot of experience and one that is properly licensed. Go online and look up the attorney’s record and read up on any reviews, as well as any pertinent background information.
Credit Reporting
Once a few months have passed after your bankruptcy, contact the three major credit reporting agencies and request copies of your report. Be sure these reports are accurate and correct in regards to all of your closed accounts. If you find any errors, contact the credit reporting agency to get them fixed immediately for the sake of your credit rating.
Be certain to create a list that displays all the debts you want discharged when you file. Those who have unlisted debt will not have it included in any 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.
You do not need to halt your plans to file simply because you have changed jobs. It still may be ideal to file for bankruptcy. The timing of your bankruptcy is important. Your repayment ability will be determined by your income at the time of your filing.
If you are about to get divorced and you are having financial hardships, you may want to rethink your divorce. Many people find they need to claim bankruptcy after divorce because they did not see the financial problems that were ahead of them. It is always wise to think twice about divorcing.
As noted in the beginning of the article, bankruptcy is a hot topic nowadays, mostly because of the state of the economy. Let the advice you have received from this article be a guide to help you make the right choices for you and your finances.
