The economy is bad looking these days. With a bad economy means that more and more people are losing jobs and getting in debt. Debts result in bankruptcy, which is never a good thing. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
Be certain you are making the right choice before you file for bankruptcy. You have better options. For example, you could try credit counseling. Since your credit history will forever note the bankruptcy, you want to make sure that you have tried everything else before you take an action such as this, in order to minimize the effect it will have with regard to your credit history.
One of the most important things to remember when filing for bankruptcy is to be honest and truthful every step of the way. Not hiding any assets or income is essential for avoiding possible penalties and your ability to re-file at some point in the future.
Don’t avoid telling your lawyer specific details with your case. Many times a lawyer may forget a key detail; therefore, it is important to remind your lawyer of any key information. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
It is important to understand your rights when filing bankruptcy. You can often have property returned to you. Autos, jewelry and even electronics that have been repossessed, could be returned. If you have property repossessed less than ninety days prior to filing your bankruptcy, you may be able to get it back. Consult with a lawyer that can walk you through the filing process.
Know and understand the difference between filing for Chapter 7 bankruptcy versus Chapter 13 bankruptcy. Be sure you go on the Internet and do your research to see what’s best for you. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Chapter 13 Bankruptcy
Look into filing Chapter 13 bankruptcy. If you have a regular source of income and less than $250,000 in unsecured debt, you can file for Chapter 13 bankruptcy. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Expect to make payments for up to 5 years before your unsecured debts are discharged. Just know that missing one payment could cause your case to be dismissed.
Spend time with loved ones. Filing for bankruptcy is a difficult process. It is long, stressful and makes people feel like losers. Some people do not even want to speak with others until the bankruptcy is official. Do not isolate yourself or you will put yourself at risk for depression. So, even though you may be ashamed of the situation you are in, you should still be around those you love.
After you have filed for bankruptcy, enjoy your life. Many debtors stress-out during the time of filing. Stress easily leads to depression, if you are not maintaining control of your emotions. Life is going to get better once you get through this.
Bankruptcy can cause anxiety and a host of other physical and emotional issues. Make sure that you hire an experience lawyer to get your bankruptcy done properly. Don’t think that the highest priced attorney is the best. The cheapest attorney may not be the best, but the most expensive may not be the best either. Speak with trusted people, check the BBB and take advantage of the free bankruptcy attorney consultations. If you really want to check up on them check out how well they do at court hearings.
When filing for bankruptcy, ensure you have listed all of your financial obligations. Leaving out information either purposely or by mistake can prolong your petition, or have it dismissed completely. Even if it’s a small sum, make sure it is listed. Financial information should include all income, assets and loans.
Personal Bankruptcy
Do a little bit of research into the regulations having to do with filing for bankruptcy before you begin the process. When it comes to the code of personal bankruptcy, a large number of loopholes exist that could be troublesome. Some mistakes can even lead to your case being dismissed. Take time to research things related to personal bankruptcy before you move forward. This will make things much easier.
Don’t take big cash advances off your credit cards in the days prior to filing for bankruptcy. Doing so constitutes fraud. You can easily be ordered to repay all of this money, by the courts.
The economy is rebounding slowly, but there are still people who can’t find employment that pays a living wage. Even long-term job loss does not inevitably have to result in bankruptcy. Hopefully this article has provided you with some tips to keep yourself, or someone else, from having to file for bankruptcy. Good luck.
