Filing bankruptcy is a bit complicated. Different bankruptcy filing types are available, and the right one for you will depend on the kinds of debts you have and your overall financial picture. Know as much as you can before you file. The ideas in this article are a great place to start.
Ask yourself if filing for bankruptcy is the right thing to do. You have better options. For example, you could try credit counseling. Your credit record will be harmed by a bankruptcy filing, and therefore prior to making such a decision, it is wise to investigate other options in order to minimize the damage you suffer.
It should go without saying, but refrain from lying in your bankruptcy filings. 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.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. Check the bankruptcy laws in your state to find out if certain items are excluded from your bankruptcy filing. It is important that you read this list before filing for bankruptcy, so that can find out whether or not your most prized possessions will be seized. If you fail to go over this list, you may be unpleasantly surprised sometime down the road if any of your most valued items are seized.
Never 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. Any property repossessed within 90 days before filing bankruptcy, may be able to be returned to you. Consult with a lawyer that can walk you through the filing process.
Don’t pay to for an initial consultation with a bankruptcy attorney, and thoroughly question each candidate. It is a good idea to consult several attorney before deciding on one. Only choose an attorney once all your concerns are answered to your satisfaction. You can think about your decision before making a commitment. After your consultations, do some additional research on each attorney you consider qualified for the job.
Familiarize yourself with any new law before you make the final step to filing for bankruptcy. These kinds of laws are constantly changing and it is important that you are aware of these changes, so that you can learn how to properly file for bankruptcy. Your state will have a website to check, or a number you can call, to learn the latest changes in the bankruptcy laws.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Be certain that the person you meet with is really a lawyer. Avoid meeting with paralegals or legal assistants because they cannot give you legal advice. Looking for an attorney will help you find a lawyer you feel good around.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Do some research about these options so you can choose the best one. Engage your attorney in a conversation about each type, and ask him to answer any questions you may have before deciding which kind is right for you.
Determine if bankruptcy is necessary. Perhaps just consolidating some of your existing debt, could make them easier to manage. Going through a bankruptcy is a long and stressful process. The future of your credit will be greatly affected. Personal bankruptcy should be undertaken as a last resort when no other workable options are available to you.
See if your attorney can help you lower your payments if you want to keep your vehicle. Chapter seven bankruptcy often provides for the lowering of 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.
This article has hopefully made it clear that declaring bankruptcy is a big decision that should be considered at length. If you feel that it is your best option for your current financial state, you should contact an experienced bankruptcy lawyer who can advise you in this turning point in your life.
