Filing for bankruptcy can be difficult, but in the end it can actually make your life easier. On one side, you will need to handle a lot of people looking into your personal finances. Yet, once this process is done, you can breathe again because debt collectors will stop calling you. This article will give you some great tips to help ease the bankruptcy process.
Make sure you’ve exhausted all other options prior to declaring bankruptcy. Other available options include consumer credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
You may end up losing more than you bargained for when you file a bankruptcy claim, so be sure that you know just which assets may be taken before filing. Bankruptcy exemptions are properties may not be seized during bankruptcy. You need to compare this list to the assets you own so that you are not surprised when certain assets are seized. If you don’t read this list, there is a chance that you might get nasty surprises when they take your things away.
Do not give up. Filing for personal bankruptcy may possibly enable you to reclaim your personal property that have been repossessed, like your car, electronics and jewelry items. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
If you are meeting with a lawyer to discuss bankruptcy, the initial consultation should be free so ask every question you have. Free consultations are standard practice among bankruptcy lawyers, so interview multiple candidates before making a final decision. Don’t hire an attorney who fails to address all your concerns and questions. You do not have to give them your decision right after the consultation. If you’re unsure, don’t hesitate to talk to multiple bankruptcy lawyers.
Do some research about laws and legislation before filing. Laws are subject to change, and it’s important that you’re educating yourself about current code only. Your state’s legislative offices or website will have up-to-date information about these changes.
Free Consultation
Since it is possible to obtain a free consultation from the majority of bankruptcy lawyers, meet with a few of them prior to choosing one. Just be sure that the person you speak with really is the lawyer, rather than a paralegal, since they cannot legally give advice. By meeting with several attorneys through a free consultation you will be able to choose which attorney you feel more comfortable with.
Don’t automatically assume that bankruptcy is your only option. There are many recouses available to help you lower your payments and get back on track. If a foreclosure is your reason for filing look into your options with your bank first, such as a loan modification. Your lender can help you get current on your loan by offering you one of a number of modifications, such as getting rid of late charges, lowering interest rates, or extending the length of the loan. At the end of the day, creditors want to get paid, and sometimes a debt repayment plan is preferable to dealing with a bankrupt debtor.
After you have filed for bankruptcy, enjoy your life. Bankruptcy is a stressful process: you will have to go over your bad financial decisions and perhaps feel ashamed about your decision. This kind of stress can take a heavy toll on your personal life, especially if you are not making any efforts to adopt a positive attitude. Once your petition is in the hands of the judge, all you can do is wait.
You may want to see if you can get lower payments on your vehicle if you want to keep it. In many cases, Chapter 7 bankruptcy can lower your payments. There are certain requirements and restrictions such as a loan that has a high interest rate, cars purchased 910 days before you file, and a steady job history that can help you keep your vehicle.
Even if you are involved with Chapter 13 bankruptcy, it is still possible to get a mortgage or an automobile loan. However, it can be more difficult. You need to speak with your trustee so that you can be approved for a new loan. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. An explanation of need will also be necessary.
Bankruptcy has several pros and cons. No matter why you are filing, good information is needed. The information you just read will greatly simplify the bankruptcy filing process. Use these tips during the process and feel a little better about it.
