If bankruptcy is looming over your head, it’s time to stop worrying and get proactive. There are many effective ways to help yourself get back on your feet financially so you do not have to file for bankruptcy. You may be able to avoid filing for personal bankruptcy by following the tips presented here.
When it soaks in that filing for personal bankruptcy, don’t use all of your retirement funds, or all of your savings to resolve insolvency or pay creditors. Do not tap retirement accounts unless there is no other alternative. You may need to withdraw some funds from your savings account, but don’t take everything that is there as you will be bereft of any financial backup if you do.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Do not hide any income or assets or go on a spending spree before filing for bankruptcy: the court will find out and will not have a positive opinion of you.
Look for a bankruptcy lawyer that comes from a personal recommendation instead of someone random on the Internet or in the yellow pages. To handle your bankruptcy, you need a trusted attorney, not a shady one that is out to take your money.
There is hope! When you file for personal bankruptcy, you may even be able to retrieve personal property that has been repossessed. For example you may be able to get your car, electronics and even jewelry returned to you. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Discuss your options with a good lawyer who can help you with the filing of your bankruptcy petition.
Bankruptcy is tricky and hiring a good lawyer will be a must. With all the ins and outs of bankruptcies, it can be hard to grasp all the knowledge. An attorney will make sure that everything is being done correctly.
Become knowledgeable in regards to details about chapter seven bankruptcy vs. chapter 13 bankruptcy. Do some research about these options so you can choose the best one. Ask your bankruptcy lawyer to clarify anything you don’t understand before making a final decision about which type of bankruptcy to file.
Before filing for bankruptcy ensure that the need is there. You may well be able to regain control over your debts by consolidating them. Filing a claim can take a long time and cause much stress. In addition to the stress associated with bankruptcy, you will also have to deal with severely restricted credit in the future. You have to make certain that you absolutely have no other choice.
Unsecured Debt
Chapter 13 bankruptcy might be a good option, so don’t overlook it. 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. Typically, this goes on for roughly three to five years, and once this time has expired, your unsecured debt is eliminated. Consider that if you even miss one payment, your case will not be considered by the court.
Think about all the choices available to you when you file for bankruptcy. Ask a bankruptcy lawyer if a debt repayment plan or rate reduction would be of benefit. For example, if you are in talks of foreclosure, you could use a modified loan to overcome your debt. The lender wants their money, so they may be willing to forgive some fees, change the loan term or reduce interest as ways of assisting you. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Bankruptcy is a difficult time that always leads to lots of stress. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Get recommendations and look into other qualifications rather just choosing based on cost alone. Your attorney does not need to cost a lot, but they do need to have a lot of experience. Get referrals from those who have used a bankruptcy lawyer, talk to the bureau for better business, and take advantage of free consultations offered by most lawyers. It is even possible to watch a court hearing in order to see how well an attorney handles a case.
If you’re willing to learn and exercise patience and understanding in the process, filing bankruptcy doesn’t have to be a difficult process. If you could buy time for yourself, then do it. The important thing is to take steps to avoid bankruptcy. Now begin planning for your future.
