Personal bankruptcy can be overwhelming during the process, but a load off your shoulders once you get through it. The stress is having to deal with your financial crisis and those involved in the process. This may be very uncomfortable; however, after your bankruptcy case has been completed, you can start anew free from the hassles of bill collectors. Keep reading for a few smart suggestions for making bankruptcy a smoother process.
Be sure everything is clear to you about personal bankruptcy via looking at websites on the subject. The United States Department of Justice and National Association for Consumer Bankruptcy Attorneys provide excellent information. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Don’t be reluctant to remind your lawyer about specific details he may not remember. Don’t assume that they will recall every detail that you go over with them without a friendly reminder. It is in your best interest to speak out. You are in control of the outcome of your bankruptcy.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. You can find a listing of the asset types that are excluded from bankruptcy in the Bankruptcy Code. You need to read the exemptions for your state, so you know what property you can protect. You may find yourself unpleasantly surprised when the things you value the most are taken from you without warning. This is why it is very important the familiarize yourself with this list.
Find a specialized lawyer if you are thinking about filing for bankruptcy. You may not know everything you need to know in order to have a successful outcome of your case. A bankruptcy attorney can advise you on how proceed properly.
Do what you can to keep your home. Filing for bankruptcy will not always result in losing your home. You might be able to keep your home, for instance, if you have two mortgages or if your home has lost its value. If this is not the case, find out more about Homestead Exemptions you might qualify for if you meet certain financial requirements.
Understand the differences between Chapter 7 and Chapter 13 bankruptcy. Weigh all the information you can find on- and off-line to make an educated decision. If you don’t understand the information you researched, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. You are eligible for filing bankruptcy under Chapter 13 if you work and owe less than $250,000. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. Typically, any plan you develop will last around 3-5 years. Afterwards, any remaining unsecured debts will be discharged. Missing a payment under these plans can result in total dismissal by the courts.
When filing for bankruptcy, ensure you have listed all of your financial obligations. If you do not complete your financial profile your case could be delayed or dismissed. Add every summer, no matter how insignificant, to your documentation. When it comes to the types of things you might not be thinking about adding, just think about any automobiles you have, any money under the table you’re making, etc.
Think about other options before you file for bankruptcy. Credit counseling is an important option for you to pursue. You can get assistance from non-profit companies. They will make arrangements with your creditors so you will have lower payments as well as lower interest rates. They collect payments from your and then pay the creditors.
Don’t take out big cash advances from any of your credit cards prior to filing for bankruptcy, taking advantage of the fact that those debts will later be erased. That is considered fraudulent behavior, and you can still have to pay the credit card back, bankruptcy or no.
Don’t spend too much time deciding whether or not you should file for bankruptcy. It is difficult to admit that you are in over your head financially, but waiting will just make the problem worse. When you talk to someone professional in a timely manner, you will be able to get advice on what you can do prior to it getting too complicated.
Make sure to include all of the debts that you want eliminated on your bankruptcy filing papers. If you don’t include all your debts, the ones you leave out won’t be covered by the bankruptcy. It is your job to make sure everything important is written down, so that you don’t have to pay debts that could’ve been discharged.
There are positives and negatives when you file bankruptcy. Regardless of what your reason for declaring bankruptcy is, it is vital that you keep informed and involved in the entire process. This article should help you learn more about personal bankruptcy. Use the above tips to see positive results when filing for bankruptcy.
