The economy is still weak today. A lot of people with no jobs find themselves in debt. Debts can often lead to bankruptcy, an outcome nobody ever wants. If you would like to know how to get yourself or your friend out of filing for bankruptcy, read on for some possible answers.
Most people that file for bankruptcy owe a lot of money that they could not pay off. If this describes your situation, it makes sense to become familiar with relevant laws. Each state has their own bankruptcy laws. For example, whether or not you can keep your home, as well as what you need to do to keep it, is different for every state. Know what the laws are in your state before filing.
The most important tip a person filing for personal bankruptcy can remember and follow is to be completely transparent in all dealings. Lying on your filing can cause dire consequences such as: delays, penalties, being prevented from re-filing, or even jail time.
When looking for a lawyer to handle your bankruptcy claim, the best way to go is off of a personal recommendation instead of simply flipping through the phone book. Companies are constantly popping up, claiming to help, yet only seek to profit from your misery. In ensuring that your bankruptcy is as simple as possible, trusting your attorney makes a big difference.
Stay up to date with any new bankruptcy filing laws. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To learn about these changes, try contacting your state’s legislation office or checking their website.
Before declaring bankruptcy, ensure that all other options have been considered. For example, if you only have a little bit of debt, you might be better off if you went through consumer credit counseling. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.
Make certain that you comprehend the differences between Chapters 7 and 13. Chapter 7 involves the elimination of all of your debt. All happenings with creditors will disappear. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. You need to determine which type of bankruptcy is right for you given your unique financial situation.
A lot of bankruptcy attorneys will let you have a consultation, so try several out. 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. Take some time to talk to different lawyers to find one that fits your needs, and meshes well with you.
Always protect your house. Bankruptcy filings do not necessarily mean that you have to lose your house. It depends what your home value is and if there is a second mortgage, as all this stuff comes into play when determining if you can keep the 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.
If you’re unsure, then you need to learn what a Chapter 7 bankruptcy can do for you, as opposed to what Chapter 13 does. Be sure you go on the Internet and do your research to see what’s best for you. If you have trouble understanding the wealth of information, talk to your lawyer so he or she can help you make an informed choice.
Be sure you have no other choice but to seek bankruptcy. It may be that all you really need to do is consolidate some of your debts. Filing a claim can take a long time and cause much stress. Your future credit will be affected by these actions. This is why it is crucial that you explore your other debt relief options first.
If you are making more money than you owe, bankruptcy should not even be an option. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
The economic recovery has bypassed many people, leaving their finances in disarray. If you lack a steady job, you still may be able to prevent the need for a bankruptcy filing. Hopefully you have figured out some ways to avoid bankruptcy for you or someone you know. Take this information and apply it to your personal financial situation.
