Many people are quite frightened when they think about bankruptcy. A lot of debt and not being able to support your family can be real frightening. If this troubles you, or if you are dealing with this nightmare now, the following information is required reading.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more you know, you can be confident you are choosing the right thing and that you are taking the right road to make sure your bankruptcy proceeds as easily as possible.
Ask yourself if filing for bankruptcy is truly your best option. You can also avail yourself of other options, such as consumer credit counseling. Before you take the drastic move of filling for bankruptcy and living with a long lasting bad credit history, make sure to consider using another way that may not be as damaging to your credit.
Always be honest with the information you give about your finances. You can lose the right to file bankruptcy now or in the future if you try to withhold information about your assets and income. So it is critical that you disclose everything honestly to to avoid that and any other penalties the trustee might impose if he discovered your attempt to hide information from the court.
Don’t avoid telling your lawyer specific details with your case. Don’t just assume that the attorney will remember it automatically. Remember that you’re the boss. You’re paying your lawyer, so you should not be afraid to have your say. After all, the quality of your life hangs in the balance.
Many bankruptcy lawyers offer free consultations, so go to several before choosing one. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. Searching for the best lawyer will help you located the comfort you need during this time.
Learn about teh differences between Chapter 13 and Chapter 7 bankruptcy. Get a good grasp of the pluses and minuses each type of filing involves by researching both of them extensively. If you do not understand what you are reading, talk to your attorney before making that serious decision.
Interest Rates
You should weigh every option before thinking about bankruptcy. You can get your interest rates reduced or enter into a debt repayment plan. Before you file bankruptcy, ask your attorney if any of these are viable alternatives for you. If foreclosure looms, think about getting your loan plan modified. Some lenders will make concessions rather than losing the money owed to bankruptcy. These concessions include waiving late fees, lowering interest rates, and changing the loan term. When all is said and done the creditors just want their money, and more often than not will work with you on a repayment plan.
If you are worried about your car being repossessed, consult your attorney about trying to get the monthly payment lowered. Sometimes, as part of the bankruptcy filing, your auto loan can be restructured so that you pay less each month. It is necessary for you to have bought your car prior to the 910 days preceding your filing, your loan must carry a high rate of interest and you must be employed in order to get such a modification, however.
It is important to not wait for the final minute to petition for bankruptcy. It is quite common for people to linger on hoping that their financial difficulties will somehow resolve; however, this very rarely happens. Debt can snowball very fast, and by ignoring it, you increase the chances of worse problems, such as foreclosure and wage garnishments. As soon as you know that you are too far over your head, make the move to call an attorney skilled in bankruptcy court, to weigh your options.
See to it that you are aware of the laws concerning bankruptcy before you consider filing. There are often laws prohibiting the transfer of money from the filer for a certain period preceding the bankruptcy filing. Also, you can’t go and max out your credit card just because you are about to file for bankruptcy.
Be careful on how you pay your debts before you file a personal bankruptcy. Bankruptcy laws prohibit some creditor payoffs within 90 days of filing. When it comes to family members, a year is the cutoff for payoffs. Do your research rather than making financial decisions blindly.
Don’t put off handling the research or procedures for the bankruptcy process if that is the route you’re taking. It can be difficult to admit you’re in need of help, but your debt will only grow larger if you put off your decision. Speaking with a professional in a timely manner will allow you to receive sound advice that can help you before things get out of hand.
Filing for bankruptcy can be a very scary and intimidating experience. Though the fear may be great, you can alleviate some of that with this article. The advice in this article will make the idea of filing for bankruptcy a little easier for both you and your family.
