Do not consider bankruptcy until you have researched your other options. This is due to the current financial climate. Before filing for personal bankruptcy, take some time to understand the entire process and applicable laws so that you can make wise decisions. If you read this article, you will learn what you need to know.
Lots of people have to claim bankruptcy when their bills are larger than their income. If this is your case, you should do some research about bankruptcy laws in your state. Each state has its own set of rules regarding bankruptcy. For instance, in some states, you can’t lose your home to bankruptcy, while in other states, you can. It is important to be cognizant of the laws in your state before filing for bankruptcy.
Try going to a personally recommended bankruptcy lawyer instead of using a phone book or the Internet. Bankruptcy attracts a lot of fly-by-night firms that take advantage of desperate people, and a word-of-mouth recommendation makes it more likely that your bankruptcy will go smoothly.
Don’t file for bankruptcy until you know what assets of yours can and can’t be seized. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. Make sure that you carefully look over this list prior to filing to discover if your valuable assets will be seized. If you neglect this important step, you might be blindsided when a possession that is important to you is taken to repay creditors.
Be as honest as you possibly can when filing for bankruptcy; hiding liabilities or assets will only hurt you in the long run. When you file make sure whoever is handling the process is fully aware of each and every financial detail. Don’t hold back information and create a strategy so you can deal with what’s really happening.
Make time to visit with family and friends during the bankruptcy process. Filing for bankruptcy, and all that comes with it, can be hard to handle at times. It is lengthy, stressful and often leaves people feeling ashamed, unworthy and guilty. Some people do not even want to speak with others until the bankruptcy is official. This is not recommended because you will only feel bad and this may cause you to feel depressed. It’s imperative that you spend as much time with loved ones as you can, even in the midst of your financial dilemma.
Once the initial filing period is over, ensure that you are getting out and enjoying life. It’s not uncommon to be overwhelmed by the filing process. Depression can ensue from the stress if action isn’t taken. Once your petition is in the hands of the judge, all you can do is wait.
Car loans or mortgage loans are still a possibility when you have filed for Chapter 13. It’s a bit more difficult, though. Normally, the trustee assigned to your bankruptcy must approve any new loan. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. You will need to be able to explain why the purchase is necessary.
Pick the right time to file. Proper timing is important, especially when it comes to personal bankruptcy. There are occasions where it pays to delay and others where a quick decision is the best option. Speak with a bankruptcy lawyer about when the best time is to file for your specific needs.
Prior to filing for bankruptcy, purge from your vocabulary the word “shame”. Many people feel guilty, embarrassed and unworthy when dealing with bankruptcy. Learn to accept these feeling at face value– you can’t prevent yourself from feeling them, but you can stop them from controlling you. Try to keep a positive attitude during this tough time and you will be able to better cope with bankruptcy.
Avoid using bankruptcy as a last resort. Often, people try to act like they are not in financial straits. They imagine the issues will blow away, but they do not. If you have failed to make payments for several months but have continued making purchases on credit, your petition may be denied. When you make the connection that your debt level is too high, contact an attorney that specializes in bankruptcy as soon as possible, to see what can be done.
Before you file, make sure you understand the laws as much as possible. For instance, it’s prohibited for an individual to transfer assets to someone else a year before filing for bankruptcy. Also, it is against the law for a person to acquire more debt on their credit card prior to filing.
Make sure that you disclose every bit of financial information on your bankruptcy petition. If you leave off even one tiny detail, you may end up in some serious trouble, but at the least your claim will be denied. No matter how insignificant a sum seems, include it in the documentation. Some things to be included are: current loans, valuable vehicles and side jobs.
Make sure you hire a good bankruptcy lawyer. Many novice lawyers get their feet wet with personal bankruptcy cases. Often times, people choose lawyers that aren’t licensed properly or that don’t have enough experience. Don’t fall victim to this. One resource that should prove extremely helpful is the Internet. You should be able to find the lawyer’s record online, as well as reviews from their previous clients.
Many people file for bankruptcy every year, mainly because the economy is bad for everyone. When deciding how to tackle your bankruptcy, make sure that you employ the advice that you read here.
