As you probably know, the economy is in the toilet. When the economy tanks, many people lose jobs and accumulate debt. Debts can often lead to bankruptcy, an outcome nobody ever wants. If you would like to know how to get yourself or your friend out of filing for bankruptcy, read on for some possible answers.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The United States Department of Justice, the American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys, all provide valuable information. By having more knowledge, you can make the right decision, as well as be sure you are ensuring that your personal bankruptcy case goes smoothly.
Before you file for bankruptcy, carefully consider if it is the right option for you. You can also avail yourself of other options, such as consumer credit counseling. Be certain that bankruptcy is the only option you have before pursuing this course because bankruptcy is always evident on your financial and credit history.
Be sure to weigh all of your options before deciding to file for personal bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. Negotiating with creditors is another option, but creditors are notorious for “forgetting” these agreements, so get them in writing!
Unsecured Debt
Consider Chapter 13 bankruptcy for your filing. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. That way, you can hold onto your personal assets and pay back a portion of your debts pursuant to an approved plan. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. However, if you miss even one payment, the court will dismiss your entire case.
Don’t isolate yourself from family and friends. Bankruptcy can really wear down your emotional reserves. It is long, stressful and makes people feel like losers. A lot of people become depressed and withdrawn until their bankruptcy is discharged. This isn’t true though because when you isolate yourself you will just start to feel worse and may become depressed. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
Before you choose Chapter 7 bankruptcy, think about what effect that is going to have on any co-signers you have, which are usually close relatives and friends. When filing Chapter 7, you are not legally responsible for the debts in your name. However, creditors can demand co-debtors pay the amount in full.
File when the time is right. When it comes to filing for bankruptcy, your timing is important. There are occasions where it pays to delay and others where a quick decision is the best option. Discuss your specific situation with a bankruptcy lawyer to find out when would be your best time to file.
Be aware of the fact that you may be under a great of stress while you deal with your bankruptcy. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Look beyond the fees a lawyer charges when you make your hiring decision. Hire the best attorney you can afford, not the one who charges the most. Make sure people who have experienced bankruptcy give your referrals. It is even possible to watch a court hearing in order to see how well an attorney handles a case.
Before you decide to file, make yourself aware of the laws about bankruptcy. Did you know that in some areas, you cannot transfer assets from yourself to another person in the year previous to filing occurring? Also, you can’t go and max out your credit card just because you are about to file for bankruptcy.
Do not omit any information about your finances, assets or debts when filling out your bankruptcy paperwork. If you forget information you run the risk of having your petition delayed, or possibly even dismissed. The most meaningless, innocuous finance or expenditure needs to be listed when you file a claim. Current loans, second jobs and assets ought to be included.
Even though our economy is slowly improving, many people still do not have jobs or decent wages. If you lack a steady job, you still may be able to prevent the need for a bankruptcy filing. You hopefully have more knowledge now on how you can avoid bankruptcy. Hopefully, you have the best luck.
