Declaring bankruptcy is a negative process. The need to file for bankruptcy is usually the result of misfortune. The process can be embarrassing and can cause a person to feel secretive when it comes to finance. Follow the steps presented here to determine whether or not you need to file for personal bankruptcy at all.
Try to make certain you are making the right choice prior to filing your petition. You can also avail yourself of other options, such as consumer credit counseling. Bankruptcy is a serious negative on your credit history so make sure you have no other options before you file. It is important to keep your credit history as positive as possible.
Always be honest and forthright when it comes to your bankruptcy petition. To avoid problems, penalties and future re-filing bans, resist the urge to hide documentation or assets.
Rather than checking online, try to get recommendations from friends or family about a suitable bankruptcy attorney. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.
Learn all the latest laws before you file bankruptcy. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To learn about these changes, try contacting your state’s legislation office or checking their website.
Weigh all of your options before declaring bankruptcy. Those with smaller debts may find use in a program for consumer credit counseling. It is sometimes possible to negotiate smaller payment by yourself. If you do this, make sure you save a written record of debt modifications that are negotiated.
Protect your home. Filing for bankruptcy will not always result in 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. You should also examine the possibility of taking a homestead exemption. This could apply if your income falls below the financial threshold.
Chapter 13
Find out if you can use Chapter 13 bankruptcy, as it may help you better than the other laws. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. This lets you keep any real estate and personal property while you repay all your debts through a consolidation program. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Remember that you must make every payment. Missing even one could cause the court to dismiss your case.
Remember to spend some quality time with your loved ones. Bankruptcy can really wear down your emotional reserves. It is extremely stressful and long, and it can leave you feeling ashamed of yourself. Some folks tend to stay in the shadows until their case has concluded. However, becoming a hermit will only increase feelings of self-doubt and could make you depressed. Because of this, it’s vital you keep spending some time with the people you love despite what you are currently going through.
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. Filing for personal bankruptcy can be very stressful for the debtor. Depression and burn-out from pent of stress will do nothing to help your situation, so it is critical to let go a little. While the process is tough, you are getting a chance to start over.
Make sure the time is right when you file a bankruptcy claim. Timing is very important when it comes to personal bankruptcy filings. While there are times that it is ideal to file soon, there are other times in which you should wait. Discuss the strategic timing of your bankruptcy with your attorney.
Prior to filing for bankruptcy, purge from your vocabulary the word “shame”. The bankruptcy process makes people feel guilty and ashamed. Feelings such as these are not of value to you and it is possible for them to be psychologically harmful. Try to keep a positive attitude during this tough time and you will be able to better cope with bankruptcy.
It does not take much experience with bankruptcy to understand that the entire process can be extremely stressful. To have a reliable and trustworthy guide through the process, find a highly qualified attorney. Get recommendations and look into other qualifications rather than just choosing based on cost alone. Choosing a lawyer should be based on finding one with a proven track record who can give you the help that you need. Look to the bureau for better business, consultation, as well as others who have formerly experienced bankruptcy for more information about lawyers. If you want to know more about a specific lawyer, attend a court proceeding and see how the attorney handles herself.
As you can see, you don’t need to surrender to bankruptcy. The information contained in this article can help you to avoid having to file for bankruptcy. Start using what you learned today and see how much of a change you can make in your life, so that you do not have to harm your credit history.
