Bankruptcy is a difficult decision for anyone to make; however, it is sometimes necessary. The more you educate and prepare yourself for the bankruptcy process, the better prepared you will be to handle it. The information in this article contains information and advice from people who have actually gone through the process.
One critical element for anyone filing a petition for bankruptcy is to be honest in everything you do. Not only is hiding income and assets wrong, it is also a crime.
Keep with what you have decided to do. You may be able to regain property like electronics, jewelry, or a car if they’ve been repossessed by filing for bankruptcy. If it has been fewer than 90 days since you filed for bankruptcy, it is possible for you to get repossessed property back. Get the advice of a qualified attorney who can advise you about ways to accomplish this.
You should never pay for your first consultation with a bankruptcy attorney. Make the most of this free consultation by asking lots of questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Only make a decision after you have met with several attorneys and all of your concerns and questions have been addressed. You do not have to give them your decision right after the consultation. You can take your time and check out several attorneys before making your final selection.
It is imperative that you retain an experienced attorney if you are planning to file bankruptcy. It is difficult to make all of the necessary decisions yourself, and expert guidance will be helpful. An attorney will make sure that everything is being done correctly.
Chapter 7
Be sure you know how Chapter 7 and Chapter 13 differ. Chapter 7 is the best option to erase your debts for good. You will no longer be liable for any money that you owe to your creditors. Bankruptcy under the rules of Chapter 13, on the other hand, require you to work out a payment arrangement to pay back the agreed upon amounts. It is important that you understand the differences between the different types of bankruptcy, so that you can decide which option is best for you.
Make sure your home is safe. Filing for bankruptcy does not mean you have to lose your home. If your home has significantly depreciated in value or you’ve taken a second mortgage, it may be possible to retain possession of your home. Otherwise, look into the homestead exemption which may allow you to stay in your home if you meet financial threshold requirements.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. However, there are steps which must be taken to ensure you are within the law of bankruptcy. Before you can take out a new loan, you will have to clear it with your trustee. Document your budget to prove that you’re going to be able to make the payments. Also, be sure you can provide an explanation as to why this purchase is necessary.
Prior to filing, it is important that you know all about bankruptcy laws. Here is one example, an individual who files for bankruptcy cannot transfer any assets for a year before the filing date. In addition, it is unlawful for the filer to increase the amount of debt they are carrying on their credit cards right before they file.
If you are planning to file for bankruptcy in the immediate future, you should refrain from taking out cash advances via your credit cards. If a creditor notices that activity they can constitute it as fraud and sue to have you pay it all back even after your bankruptcy is complete.
Write down every one of your debts. After this, you can file bankruptcy, so make sure this document is accurate. Review your records to determine the precise amounts that you owe. Remember to take your time here. Rushing through will ensure that some numbers somewhere will be mixed up and then the process will blow up in your face.
Nobody wishes to file for bankruptcy, but there are cases where it is simply necessary. Now that you’ve read over this article, you learned some things that are from others who have experienced this too. Learning from others who’ve had this experience will help you learn from it as well.
