When a person needs to file for personal bankruptcy, it is not ever a happy moment. Bankruptcy can indicate financial troubles, and is a generally embarrassing topic to discuss with others. With the solid advice in the article below, you may be able to make a better choice.
Don’t avoid telling your lawyer specific details with your case. Just because you have told him something of importance that he will remember it. This is your bankruptcy and your future, so never be nervous about speaking your mind.
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.
Weigh all of your options before declaring bankruptcy. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. Also, you could try to get your payments lowered on your own. If you decide to do this, get a copy of anything you agree to.
Chapter 7
The two main kinds of bankruptcy are Chapter 7 and Chapter 13. Make sure you understand them so you know what is best for you. Chapter 7 eliminates all debts. All creditor relationships will be severed. If you file using chapter 13 bankruptcy, you will go through a sixty month repayment plan prior to all your debts being completely dissolved. Both options have advantages and drawbacks, so do your research before deciding.
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. Always ensure that the person you meet with is a real lawyer, not a legal assistant or paralegal. These people can’t give legal advice. By shopping lawyers, you will be more likely to find one that makes you comfortable about the process.
Be sure your home is well protected. Filing for bankruptcy doesn’t automatically involve losing your home. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. You can also investigate your state’s homestead exemption, an option that might enable you to keep your home if certain financial requirements are met.
Before proceeding with your bankruptcy, it’s a good idea to start spending ample time with the people you care about most. Bankruptcy proceedings can be extremely harsh. Having to declare bankruptcy leaves many people feeling like a failure. There are a number of people who wish to go into seclusion while undergoing the process of personal bankruptcy. But, isolating yourself from others could bring out more depression. So, it is critical that you keep spending time with the ones you love, regardless of the current financial situation.
Make sure bankruptcy is truely your only option before filing. You may qualify for alternatives such as debt repayment plans or interest rate reductions. Ask your bankruptcy attorney about these options. If foreclosure is imminent, see if your loan can be altered at all through a modification plan. 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. Creditors would rather be repaid, however slowly, than have you declare bankruptcy.
Initial Filing
After your initial filing, take time to enjoy yourself a bit and get your mind off of it. It can be several months between the initial filing and the final discharge of debts. Depression can ensue from the stress if action isn’t taken. Your life will most likely improve once you’re over this hump, so relax.
File for bankruptcy before your finances get completely out of control. For some people, they tend to ignore their poor financial situation and just wishing it away, but that is only putting you in more danger. It is easy you to lose control of your debt, and avoiding the problem will make things worse. As soon as you know that you are too far over your head, make the move to call an attorney skilled in bankruptcy court, to weigh your options.
As you have learned, bankruptcy can be avoided. Take the information provided here and avoid filing if at all possible. Use the information you have learned here, and see how you can revamp your finances and protect your valuable credit history.
