You should never take your decision to file bankruptcy lightly. You need to know all the possible consequences of making this decision. Use these tips to get on the right track. No matter what obstacles fall in your path, you can overcome them with good research.
Many people need to file for bankruptcy when they owe more money than they can pay off. If you find yourself needing to file for bankruptcy it is important to familiarize yourself with the state laws. Each state has its own set of rules regarding bankruptcy. Your house is safe in certain states; however, in other states, it isn’t. See to it that you understand the bankruptcy laws in the area that you live prior to filing.
It should go without saying, but refrain from lying in your bankruptcy filings. Remember that if you hide your valuable assets or income from your bankruptcy trustee, you may risk a number of penalties and complications. Among these is the possibility that you could be blocked from ever filing again.
Always remind your lawyer of specifics that are important to your case. Inaccurate or incomplete information can lead to your petition being denied. This is your future in their hands, so don’t be scared to mention it.
No good will come of trying to conceal your assets or your liabilities in the bankruptcy process; you want to be scrupulously honest when you declare bankruptcy. All of your financial information, be it positive or negative, must be disclosed to those in charge of filing your case. They need to know it all. Keeping secrets or trying to outsmart everyone is not a wise move.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. A bankruptcy attorney can help yo,u and make certain you can do things the right way.
Before making your decision to file for bankruptcy, double-check to see if other, less drastic options could make sense. If your debts are really not overwhelming, you may find the assistance you need by consulting a consumer credit counselor. You may also find success in negotiating lower payment arrangements yourself, but be certain to get any arrangements with creditors in writing.
Be sure you know what the difference between Chapter 13 and Chapter 7 bankruptcy is. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. Learning about bankruptcy is not simple, so call a bankruptcy attorney to make an appointment to ask questions.
Chapter 13
Chapter 13 bankruptcy might be a good option, so don’t overlook it. You are probably eligible for Chapter 13 if your income is consistent and your unsecured debt is under $250,000. This will allow you to keep your personal property and real estate and repay your debts via a debt consolidation plan. These kinds of plans usually range across 3, 4 and 5 years. Once this is done, all your unsecured debt will get discharged. Just know that missing one payment could cause your case to be dismissed.
Do not forget to make quality time for friends and family members. Going through a bankruptcy can be an excruciating experience. It is long, stressful and makes people feel like losers. A lot of folks decide to hide themselves from the world around them until the end of the process. Washing yourself in self-pity will only make the situation worse and can leave you feeling very depressed. Because of this, you need to make sure you spend as much time as you can with your family and friends, even if you are ashamed of your finances.
If keeping your vehicle is of great concern, ask your lawyer if you can secure a payment modification. You can often lower your payment using Chapter 7 bankruptcy. There are qualifications, such as the loan being high interest and a good work record for this option.
Remember that your Chapter 7 filing may affect other people in your life as well. When you file a Chapter 7, your debts will be dissolved. Although, your creditors may insist that the co-debtor pay off the entire debt.
Debt Collectors
Understand the rights you have as a bankruptcy filer. There are unscrupulous debt collectors who may suggest that your obligations cannot be included in a bankruptcy. There are a few debts that cannot be cleared, such as student loans and child support, but be sure to know the details when dealing with debt collectors. If a collector tries to convince you that some other type of debt, such as a credit card, is non-discharagable, get the company’s information and send a report to your state attorney general’s office.
There are quite a few ways to file for bankruptcy. Avoid being overwhelmed by too much information. Take a minute to think about the tips you learned here. This makes it more likely that you will make rational decisions that will have long-term financial benefit.
