You’ve heard it before and you’ll hear it again–the economy is in rough shape. Even with a depressed economy, jobs are lost despite debts needing to be paid. Deep debts usually wind up in bankruptcy. This is not a pleasant situation. If you or a loved one is considering bankruptcy, find out what to do about this situation by reading this article.
If you are in a position where you are unable to pay your debts, bankruptcy may be the only option for you. Study the laws in you state to learn what you need to do and what your options are. Different states have different laws regarding bankruptcy. In some areas, your residence may be completely exempt, but in others, it will not be. Be sure to have some familiarity with the law in your jurisdiction.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. Don’t allow yourself to be taken advantage of by predatory lawyers just because you are filing for bankruptcy. It is important to find someone trustworthy.
Prior to filing for bankruptcy, determine which assets, if any, are exempt from being seized. Certain assets, as listed in the local bankruptcy regulations, are immune from seizure during bankruptcy. You can determine exactly which of your possessions are at risk by consulting this list before you file. While it might not be possible to protect a particularly beloved possession, at least you will know in advance whether or not you risk losing it.
Take advantage of free consultations with lawyers and the ability to sift through and find the right one. It is important to meet with the actual attorney, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice Look for an attorney until you find one you feel comfortable with.
Do what you can to keep your home. Filing for bankruptcy does not always mean you will end up losing your home. For instance, if your home value has dropped recently, or even if you happen to hold a second mortgage, you may not necessarily lose the home. Additionally, some states have homestead exemptions that might let you keep your home, provided you meet certain requirements.
It is important to know how Chapter 7 filings differ from Chapter 13 filings. Read up on the topic and familiarize yourself with the benefits and drawbacks of both variations. Go to a specialized lawyer to ask your questions and get some useful advice on what to do.
Don’t file for bankruptcy unless it’s absolutely necessary. Maybe you can just consolidate debt to make it simpler to deal with. There is not easy process associated with personal bankruptcy. It will also make it tough for you to secure credit after your filing is complete. Needless to say, if some alternative strategy will allow you to take care of your debts, you should give it a try before resorting to bankruptcy.
Bankruptcy will erase debts. Don’t create any new debts before filing for it. This will be viewed as fraud, and you may be held responsible for the balances despite your bankruptcy filing.
Don’t believe the myth that declaring bankruptcy means you lose everything you own. Most of the time, you retain your personal possessions. You can keep your clothes, your furniture, your jewelery and your primary vehicle for instance. You will need to talk to a bankruptcy attorney to find out whether your local laws and personal situation will allow you to keep your car or home.
You will want to retain a bankruptcy lawyer if you decide to file for personal bankruptcy. An attorney can assist you both in ascertaining if bankruptcy is what you need and dealing with the court appearance. You lawyer can also help you fill out and file paperwork and answer all your questions.
Just because you got alternative employment just prior to filing should not make a difference to your plans. It may still be a good idea to go ahead with the bankruptcy. The timing of your filing is also going to be important. If begin to file before getting your money, your income will not be considered when repayment options are discussed.
Some good personal bankruptcy advice is to think twice about getting a divorce when you are in a difficult financial situation. The economic stress of a divorce can be the final blow leading to bankruptcy and this situation may be avoided. You should make every effort to attempt a fix.
Avoid Bankruptcy
The economic recovery has bypassed many people, leaving their finances in disarray. That said, it is possible to avoid bankruptcy even if you are having cash flow problems. Hopefully, you are now aware of how to get yourself or your loved ones on the right track in order to avoid bankruptcy. Best of luck to you.
