In order to file a bankruptcy claim, you will run into more than a couple of complicated hurdles to jump. All types of bankruptcy exist. The kind that you select depends on your finances and your debt. You should learn as much as possible about personal bankruptcy if you are trying to make a decision to file or not. The advice in this article can be a good starting point for you.
Do some research online about personal bankruptcy to get a better idea of what this procedure implies. The United States The Department of Justice is just one resource of information available to you. The more you know, the better equipped you’ll be to make the wise decisions needed for a successful bankruptcy.
Exhaust every other option before making the decision to file for personal 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.
When choosing a bankruptcy lawyer, your best option is to find someone who is recommended by someone you know versus someone who you find online or in the phone book. There are many companies who take advantage of financial desperation; that is why it is important that you get someone that is trustworthy.
Prior to filing for bankruptcy, discover which assets cannot be seized. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. This will ensure that you do not have any surprises once you have filed bankruptcy.
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. Only choose an attorney once all your concerns are answered to your satisfaction. Take your time before you decide to file after you meet with your lawyer. This allows you time to speak with numerous lawyers.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Having a lawyer on your side is the best way to avoid mistakes and bad decisions. Choose an attorney versed in personal bankruptcy to make sure you don’t make mistakes.
If you can afford to pay your bills, bankruptcy is not a wise option. It can seem like bankruptcy can be an easy way to avoid paying back your debts, however it leaves a serious mark in your credit report that can last between seven and ten years.
Consider all options before filing for bankruptcy. For example, you can always talk with a lawyer to see about different options through creditors or other means that will not require wiping the entire slate clean. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. 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. 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.
Chapter 7
Remember that filing for Chapter 7 personal bankruptcy will not just affect you. Think about the effect it will have on business associates, friends and family or anyone else who may be a co-signer with you. You will be freed of responsibility for debts that you share if you make a successful Chapter 7 filing. Although, your creditors may insist that the co-debtor pay off the entire debt.
During a Chapter 13 bankruptcy, you may still be able to get a mortgage or car loan. There are extra hoops to jump through. You have to meet with your trustee to get approval for the new loan. You will need to make a budget and prove that you will be able to afford your new loan payments. You will need to be able to explain why the purchase is necessary.
Clearly, filing for bankruptcy takes a great deal of thought and consideration in advance. If you feel that it is best for you to file for bankruptcy, a qualified attorney can be of great assistance, ensuring you make the best choices.
